Management buyouts show large second-quarter fall

THE total value of pounds 10m-plus management buyouts fell in the second three months of this year to pounds 500m, the lowest second quarter by value since 1988, according to figures released today by the accountants and management consultants KPMG Peat Marwick, writes Roger Trapp.

The statistics also defied the recent trend for stronger growth in the second quarter by showing a 19 per cent fall from the first three months' figure of pounds 620m.

However, the number of deals being completed remained steady at 15 in each of the first two quarters of the year.

Chris Beresford, head of buyouts, believes the flotations now in progress - Kenwood, Country Casuals, Anglian Windows, MFI and Taunton Cider - are causing anxiety for managements and institutional investors.

'Successful flotations are vital to the MBO market. They need to get away well and at good prices. Some of the current crop are being harvested at prices below expectations.'

The three largest deals in the quarter were Caledonian Newspaper Publishing ( pounds 94m), Exco International ( pounds 75m) and Teeside Holdings ( pounds 63m).