The value of mid-market buy-outs in the UK has risen by almost half on the same period last year, according to accountant KPMG.
Research released by the firm’s private equity division shows that 47 deals were completed from January to the end of March this year – 12 more than during the same period in 2006. The increase in volume has also led to a rise in value with £5.1 billion worth of deals completed this year compared to some £3.5 billion 12 months ago.

KPMG partner Michael McDonagh said this has been a strong start to the year for mid-market deals. “Around half the deals involved secondary or even tertiary buy-outs, where one private equity house sold an asset on to another. The rise in such buy-outs is a sign of profit-taking and the increasing maturity of the market.”

The firm estimates that with buy-outs involving retailers such as Fat Face, Floors-2-Go and Jimmy Choo already completed, the value of UK buy-outs will top £30 billion for the first time.

“The prospects for the year ahead suggests another frenetic few months of buy-out activity,” McDonagh added. “Deals continue to be fuelled by liquidity in the debt markets where banks are now giving private equity houses even more latitude over businesses that have been acquired. With a couple of billion pound-plus transactions pencilled in for the coming weeks, we predict another strong second quarter.”