The UK management buy-out (MBO) market grew by 27 per cent last year to a record value of £6.5bn and shows no signs of retreating during 2006, according to a KPMG report.
According to the market watcher's private equity group, the average value of an MBO was up £27m to £154m last year. 162 larger buyouts were completed last year with a total value of £24.9bn, with deals worth over £100m representing the strongest area of the MBO market.
Mick McDonagh, corporate finance partner at KPMG’s private equity group said: "The last quarter of 2005 was the fifth quarter in a row with over £5bn invested in the UK buyout market, a level of sustained activity that has not previously been experienced. There is no sign that this level of activity will let up in the New Year."
CRN reported a number of MBOs in the IT market last year, including a £20m deal by directors at computer hardware manufacturer Stone Computers (CRN 7 March) and Wimbourne-based reseller Abtech Computer Services UK (CRN 6 June).
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