Bankers turn away from buyouts

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GLOBAL FINANCIAL turbulence has put bankers off lending to management buyouts (MBOs) in continental Europe, ending a two-year boom in MBOs. Activity was already slowing before the worst turbulence struck financial markets in the region, according to the latest survey by KPMG, the accountancy firm. The turmoil also made companies reluctant to sell up when falling markets could torpedo a deal at any moment.

The KPMG study shows that the value of larger MBOs (pounds 10m- plus) fell to pounds 2.79bn in the first half of 1998, from pounds 6.46bn in the previous six months and pounds 4.52bn in the first six months of last year.