Private Equity-Backed Buyout Deals by Value Band in the US – October 2013

by Catriona McCarron

  • 31 Oct 2013
  • PE

According to Preqin’s Buyout Deals Analyst, the US has seen 1,125 private equity-backed buyout deals in 2013 YTD, which represents 54% of the total number of private equity-backed buyout deals globally so far this year. The US has seen an aggregate deal value of $142.5bn in 2013 YTD with particularly sizable deals such as Dell, Inc and H.J. Heinz Company providing a collective $52.9bn towards the aggregate value.

Large-cap deals ($1bn and over) accounted for 9% of the aggregate number of deals and contributed 72% towards the aggregate value of deals in the country in 2013 YTD. Providing 17% of the aggregate US private equity-backed buyout deal value in 2013 YTD is Dell, Inc; in Q1 2013, it was announced that Dell, Inc was to be privatised by Silver Lake and MSD Capital for $24.9bn. H.J. Heinz Company contributed 29% towards the aggregate value of US private equity-backed buyout deals in 2013 YTD with their $28bn privatisation, by 3G Capital and Berkshire Hathaway announced in February 2013.

Small-cap deals (those under $250mn) accounted for 65% of all private-equity backed buyout deals in the US in 2013 YTD, while contributing 8% to aggregate deal value. Meanwhile, mid-market deals ($250-$999mn) accounted for over a quarter (26%) of the total number of deals, and represented a fifth (20%) of the aggregate deal value in the US in 2013 YTD.

When analysing private equity-backed buyout deals by quarter in 2013 YTD, it is evident that Q1 saw the largest proportion of small-cap buyout deals. Statistics show that 71% of all US private equity-backed buyout deals were valued under $250mn in the first three months of the year, compared to 57% so far this quarter. The number of mid-market deals ($250-$999mn) as a proportion of all US private equity-backed buyout deals has increased significantly in Q4 so far and accounts for 43% of deals in the US during October 2013. This compares to an average of 24% that deals in this value range represented in Q1-Q3 2013. Large-cap deals increased their US buyout market share from 8% in Q1 to 11% in Q3 2013, however so far this quarter, no private equity-backed deals valued at $1bn or more in the US have yet been announced.

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