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Exit 4

In the Centre for Management Buy-out Research's latest analysis on buy-out exits, they find that with a healthy economic outlook and relatively good stock market conditions, there are signs of a return of confidence to the M&A market in general. Although secondary buy-outs provided a high proportion of private equity realisations in 2004, there were also some large scale trade sales.

After some difficulties in recent years the first half of 2004 has brought a substantial improvement to the buy-out exit market. With a healthy economic outlook and relatively good stock market conditions there are signs of a return of confidence to the M&A market in general. As anticipated this has created an improved environment for buy-out exits in 2004. Although secondary buy-outs have still provided a high proportion of private equity realisations this year, there have also been some large scale trade sales.

Furthermore, after a slow start to the year, flotations took off in the second quarter with more new listings during this period than in the whole of 2003. This increased activity, especially for larger exits, has resulted in a total exit value of £8.5bn for the first six months of 2004, almost matching the £8.8bn total recorded for the whole of 2003. The latest six month exit value is the highest ever six month total and is actually higher than the total value of new buy-outs this year, which reached £7.8bn by the end of June.

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© CMBOR 2005. Used on AltAssets with permission.

The Centre for Management Buy-out Research (CMBOR) is sponsored by Barclays Private Equity Limited and Deloitte at the Nottingham University Business School. TCMBOR was founded by Barclays Private Equity Limited and Deloitte at Nottingham University Business School in March 1986 to monitor and analyse management buy-outs in a comprehensive and objective way. As an independent body, CMBOR has developed a wide-ranging and detailed database of over 18,000 companies, which provides the only complete set of statistics on management buy-outs and buy-ins in Europe. CMBOR publishes regular reports on buy-out trends in its Quarterly Review, as well as the results of specialist survey and case study research on relevant issues both in buy-outs in the UK and Western Europe. CMBOR publishes regular reports on UK buy-out trends in its Quarterly Review, as well as the results of specialist survey and case study research on relevant issues both in buy-outs in the UK and Western Europe. The annual European Management Buy-out Review is produced to complement this, providing an analysis and review of buy-out trends throughout Continental Europe. Our new publication, Exit, provides definitive statistics and analysis on buy-out exits. Centre for Management Buy-out Research (CMBOR), Nottingham University Business School, Jubilee Campus, Wollaton Road, Nottingham, NG8 1BB, +44 (0)115 951 5493, Andrew.Burrows@nottingham.ac.uk, www.cmbor.org