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Do private company sales discourage investment?

Article Abstract:

There is increased criticism of the competitive of the UK in the international market which is closely linked to poor manufacturing investment levels. It is argued that investment by quoted companies is restricted by shareholders' dividend and profit requirements, and that long-term profitability is sacrificed to short term returns due to the high level of acquisitive activity. Critics believe that takeover activities amongst quoted companies should be harder to encourage long term investment policies.

Acquisitions and mergers, Practice

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Sharp rise in private company prices

Article Abstract:

Private United Kingdom company prices have risen noticeably during 1997. The BDO Stoy Hayward/Acquisitions Monthly Private Company Price Index (PCPI) index rose by 0.9 pounds during Q2 1997. The PCPI index appears to be reacting from strong stock market conditions in existence since Jun 1996. Currently, private companies that are considered to have good growth prospects are sold at relatively high prices. Less attractive companies reach disproportionately less when they are sold.

Prices and rates, Private companies, BDO Stoy Hayward

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Buyers lower their expections

Article Abstract:

The private company price index, measuring prices paid for UK private companies, fell 16% for the second quarter of 1995, although it stood at 11.1 times earnings. The fall should be viewed in relation to the fall in the FT Non-Financials (FTNF) index, with the discount between the two remaining at some 34%. The number of reported deals completing fell to about 32 a month, compared to 40 in the first quarter of the year.

Mergers, acquisitions and divestments, Business enterprises

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