On average, European companies backed by Private Equity funds have seen their sales grow by 7% a year over the past 5 years. These are the findings of Gain.pro 's latest report: Finding Growth in Europe.
Their average sales growth is twice as high as that of privately-owned companies.
" With high interest rates looking set to persist, growth is only going to become more difficult. However, what we see in our data analysis is that Private Equity-owned companies continue to show resilience. It' s clear that, despite the current uninspiring macro-economic environment, investors can look forward to many significant opportunities in the European Private Equity landscape," comments Sid Jain, Director of Insights at Gain.pro, whose platform provides in-depth information on companies, investors, industries and investment activity.
What are the most promising sectors?
The Technology, Media & Telecommunications sector boasts an average organic growth rate of 8-10%, followed by Financial Services, Science and Healthcare. The report also highlights numerous growth opportunities in theindustrial, materials andenergy sectors, which have historically grown more slowly.
As Sid Jain concludes, "Ultimately, we believe that European investors need to be more vigilant in their quest for growth. They need to look for multiple arbitrage opportunities based more on a buy-and-build strategy and operational optimization, not on valuation multiple arbitrage. "
