Private Equity: Surging Ahead
Private Equity, The Netherlands | Report | Q4 2023
2023 Q4 demonstrated a strong recovery in the Netherlands from a weak Q3
M&A activity in the Netherlands
In Q4 2023, M&A activity in the Netherlands demonstrated a strong recovery from a weak Q3, finishing off with a total of 285 deals. Q4 2023 also recorded the highest quarterly PE-involved deal count over the past two years with 75 transactions, highlighting the resilience and adaptiveness of PE activity in the Dutch M&A market.
In the last quarter, valuation multiples have remained unchanged at 9.0x, signifying the stability of European EV/EBITDA multiples. Buyers and sellers narrowed valuation gaps over the past year, incorporating the current status quo into their valuations.
Looking towards 2024, we expect a promising M&A year on the back of stabilizing financing markets, suppressed demand from buyers and an accumulation of assets among sellers, and ample dry powder at PEs. In the first half of 2024, we expect deal activity to continue its strong momentum, based on a backlog of PE exits and on-hold processes being dusted off in a more balanced M&A environment.
European leveraged finance market
The year 2023 marked one of the most disappointing periods in the last decade concerning sponsored loan volume. The total volume concluded at €28.6bn, reflecting a more than 21% decline from the €36.3bn recorded in 2022.
In addition, there's a substantial decrease in deals with leverage exceeding 6.0x, falling from 46% in 2022 to 29% in 2023. This decline is linked to lenders adopting a more cautious stance, influenced by macroeconomic factors, rising interest rates and a consequent preference for risk mitigation.
However, as the market seems to have absorbed the impact of the conflict in Ukraine, followed by an interest rate decrease by the Federal Reserve in November, an increase in lender activity is expected.
Looking ahead to 2024, we cautiously anticipate a more positive outlook in M&A activity now that the market seems to have absorbed the impact of the conflict in Ukraine and interest rates are projected to decrease.FRANK DE HEK, PARTNER
Download PDF
For more expert commentary in this sector, download the report below.
Talk to the experts - Private equity support across the board
Partner
Full profile
Associate Director
Full profile
Partner Debt Advisory
Full profile
Partner Equity & ECM Advisory
Full profile