European take-privates slump to five-year low as stocks rally

Just 37 PE-backed public-to-private deals have been completed this year, a marked drop from 2024.

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PE take-privates in Europe have fallen to their lowest level, as rising share prices, expensive financing and a stubborn valuation gap make it increasingly difficult for buyout firms to acquire listed companies at attractive prices.

Firms completed just 37 take-private deals this year worth a combined €24.9 billion (about $29.1 billion). At the current pace, this would be the lowest annual deal count and value since 2020 and marks a sharp decline from 2024, according to PitchBook data.

A strong equity rally has been the main reason for the decline. The FTSE 100 is up 17% year-to-date and the Stoxx 600 has gained 13%, making public companies more expensive and less inclined to entertain takeover bids.

Even so, a few large deals were successful. In July, KKR agreed to buy London-listed precision measurement group Spectris for £4.8 billion (about $6.5 billion) following a bidding war with Advent International. A month earlier, software provider Fortnox was taken private in a 44.09 billion Swedish kronor ($4.6 billion) deal by First Kraft and EQT.

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A Reuters poll suggests that European stocks are likely to continue rising in 2026, which could make take-privates even more difficult by eroding the discounts that PE firms seek, widening valuation gaps, and increasing deal premiums.

However, Europe’s ongoing valuation discount relative to the US may still make some targets appealing, particularly to US managers seeking bargains.