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4 FOCUS ON MID-SIZE DEALS<br />
Focus on to mid-size transactions – debt financing constraints<br />
on large deals would incur bulk risks in portfolios<br />
Deal sizes<br />
"IN WHAT DEAL SIZE RANGE DO YOU EXPECT THE BULK OF M&A<br />
TRANSACTIONS TO TAKE PLACE IN THE NEXT 12 MONTHS?"<br />
MID-MARKET<br />
7% 10% 8%<br />
16% 15%<br />
28%<br />
41%<br />
8%<br />
Total<br />
>USD 1 bn<br />
US$501-US$1bn<br />
22%<br />
41%<br />
12%<br />
APAC<br />
Source: Intralinks Global M&A survey July 2010<br />
US$251-US$500m<br />
US$101-US$250m<br />
27%<br />
30%<br />
22%<br />
13%<br />
Latin<br />
America<br />
Low loan availability and the<br />
inexistence of a functioning <strong>European</strong><br />
loan syndication market make large<br />
transactions likely to remain seldom,<br />
at least in H1<br />
> Given debt financing constraints, PEs<br />
are unlikely to accept bulk risks in their<br />
portfolios resulting from high equity<br />
contributions in large deals<br />
> We thus expect the majority of PE<br />
transactions in Europe below the<br />
EUR 1 bn threshold, with some bigger<br />
deals from H2 being the exception<br />
from the norm<br />
<strong>European</strong> <strong>Private</strong> <strong>Equity</strong> <strong>Outlook</strong> <strong>2011</strong>_Final_010411.PPTX 35
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