Deals are still being done in Europe and especially the UK, with the most bullish activity seen in the mid-to-lower end of the market, according to new research.

Buyout statistics released by Baird, the investment bank, revealed that in the first three months of this year there were 367 disclosed deals under £500 million in the UK, compared with 432 for the same period last year. This signalled a decline of 15 per cent, which the bank said was positive considering “a highly buoyant Q1 2007 period.”

While the total value of deals fell from £19.2 billion to £12.1 billion, a drop of 37 per cent, which according to the bank signals that the “lower end of the mid-market has still been relatively busy”.