Private equity predators are expected to snap up swathes of British companies this year after deal volumes hit their lowest level in seven years in 2020.
Private equity firms, infamous for making drastic cuts at the companies they buy and loading them with debt before selling them on for more money, completed 889 UK transactions last year worth £87.2billion, according to accountancy firm KPMG – a fall of 26 per cent on 2019.
Dark days: Private equity firms are infamous for making drastic cuts at the companies they buy and loading them with debt before selling them on for more money
But Jonathan Boyers, of KPMG, said: ‘Once the initial shock of lockdown had worn off, and after a number of years of hesitancy caused by Brexit, general elections and broader international uncertainty, we saw a renewed urgency amongst private equity investors to get deals done.
‘We’re certainly not seeing any signs that the latest lockdown is quelling momentum.’
Boyers added that concerns around capital gains tax changes, and a focus by large firms on slimming down, would likely contribute to a rise in deal-making.
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