Some 96% of U.K. midmarket private equity deals fail to deliver on pre-deal return expectations, according to Grant Thornton Corporate Finance's Midmarket Barometer. That's about the same as last year, according to firm's 2005 survey.
In June, Grant Thornton surveyed 100 midmarket venture capital firms involved in deals valued between ?5 million ($9.26 million) and ?200 million, said Chris Marroni, Grant Thornton spokeswoman. "This accounts for the vast majority of deals that take place in the U.K. in any given year," she explained.
The survey also found that over the past 12 months, one in five private equity investors acquired businesses through a formal auction process, although only 2% said they think auctions are the best way to buy a business.