In a previous thread, there was a lot of speculation around PE being the next high finance sector to follow the growing trend of squeezed margins and lower frequency of transactions.
An FT article from February 2017 mentioned how analysis from Bain showed that buyout groups' share of deals has fallen to its lowest point since 2009 (can't post links since I'm a new user).
"The research found that just 4.2 per cent of deals ended up with private equity buyers in 2016, down from 5.4 per cent in 2014. PE's share of deals peaked in 2006 at 7.9 per cent.
Recent examples of private equity groups being outbid by corporations include the purchase of Yahoo by Verizon after several buyout groups bid for the California internet search company.
Likewise, the share of total mergers and acquisition activity by value involving buyout group purchasers has fallen from 9.1 per cent in 2014 to 8 per cent in 2016, Bain found in research released ahead of SuperReturn in Berlin, private equity's main annual gathering.
Buyout groups are continuing to be priced out in 2017. Consumer groups Weetabix and Continental Foods are each up for sale, and people briefed on both processes say they are largely being fought over by corporate buyers."
What are your thoughts on this? The beginning of a long-term trend or just a temporary drought?