While European M&A activity has so far tracked lower this year compared to last (a 29.4% reduction in value against year-to-date 2018), figures for public to private transactions ("P2Ps") have been the exception. Recent market data has shown 25 P2Ps being completed so far in Europe this year, valued at a combined €33 billion, which amounts to the highest ratio of public deals by value and volume in Europe since the financial crisis.
Private Equity ("PE") houses have been at the forefront of this trend as they have looked to deploy resources in public markets rather than more typical secondary and tertiary private acquisitions. There is an economic logic behind this: with European public companies now increasingly trading at lower valuations relative to the private multiples, P2Ps are now being seen as offering value - even taking into account the additional cost and complexity of a public bid versus an auction.
