SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 91 - April 19, 2013 - New Study: What Happens When Deals are Leaked - Investment in Clean Energy Trends - Good News for US Startups: Angel Investment Stabilizes - PE to Push European M&A Deal making in 2013 - Candle Company Attracts Buyout Offers of up to USD 2 billion - Quote of the Week: Personal Flight

1. DIGEST 91SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 91
April 19, 2013
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New Study: What Happens When
Deals are Leaked
Investment in Clean Energy Trends
Good News for US Startups: Angel
Investment Stabilizes
PE to Push European M&A Deal
making in 2013
Candle Company Attracts Buyout
Offers of up to USD 2 billion
Quote of the Week: Personal Flight
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2. 1
www.DealMarket.com/digest
NEW STUDY: WHAT HAPPENS WHEN
DEALS ARE LEAKED
In the world of M&A it is a fact that information about deals often gets leaked to the press. A new study
shows that leaded deals take longer and are less likely to complete. According to a report by M&A
Research Centre at Cass Business School in London, and Remark while the number of M&A deals that
leak has declined dramatically over the last two years, the risks from leaking are rising, as well as
regulatory pressures. Researchers examined more than 4,000 transactions between 2004 and 2012, as
well as interviewed M&A practitioners in Europe and the US.
Key Findings
• Most deal leaks are deliberate, with leaking by sellers responsible for driving higher bid premiums and
leaking by bidders or third parties done to terminate bid discussions.
• The number of deal leaks has been falling.
• There has been a drop in leaked deals from a peak of 11% during 2008-2009, to 7% during 2010-2012.
• The study found that on average leaked deals took over a week longer to close than those that did not
leak. In addition, in the last two years, leaked deals were 9% less likely to actually complete than deals
that were not leaked.
• Leaking news is much more common in EMEA, particularly the UK, than in the US, though the gap is
shrinking fast.
• Leaked deals that actually close are more likely to be good deals for both seller and acquirer
INVESTMENT IN CLEAN ENERGY TRENDS
Investment worldwide in the first quarter of 2013
was down 22% on a year earlier, due to a downturn
in large wind and solar project financings, according
to Bloomberg New Energy Finance (BNEF). The
figure is still a stunning USD 40.6 billion. Last year’s
total investment was also down from a peak in
2011. Investment dropped by 11% to USD 269
billion for the year. The drop in the last eighteen
months comes as a result of the ending of a number
of significant support programs launched by
governments in the aftermath of the financial crisis
come. Also contributing to the fall is the
plummeting cost of clean energy technology.
Activity has been high in terms of how many megawatts of capacity were installed, but not so much in
dollar terms. BNEF warns that for a reduction greenhouse gases, an investment level would have to
double to reach the goals set for 2020. It also said that the first quarter is typically lower and not
necessarily an indication of how the activity will proceed the rest of the year.

3. 2
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GOOD NEWS FOR US STARTUPS: ANGEL
INVESTMENT STABILIZES
The latest Halo report says angel investing for the year was stable and comparable with prior years. Pre
money valuations for early-stage companies remained steady at USD 2.5 million and round sizes were
relatively consistent. The Halo report is from The Angel Resource Institute, Silicon Valley Bank and CB
Insights and is based on a survey of US-based angel group investment activity.
Other findings
• The sectors and geographies getting funding are shifting - most notably, mobile and telecom companies
are gaining share of angel investment deals and dollars
• Healthcare companies are losing share of angel investments.
• Companies in the Northwest and the Southwest US are gaining ground on the number of deals and
total investments they receive over companies in California and New England.
• Median angel round sizes hit a five quarter high at USD 690,000 in Q4 2012 for the second quarter in a
row. When angel groups co-invest with other types of investors, the median round size is higher at USD
1.5 million.
The trends in valuations, growth in investment size, and wide geographic activity among angel investors is
evidence that angels are a reliable and a critical part of growing the next generation of great new
companies, concludes the report
Image source: Helo Report Infographic

4. 3
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PE TO PUSH EUROPEAN M&A DEAL
MAKING IN 2013
A new survey by Roland Berger on
M&A sentiment in 2013 says that just
over half of those surveyed are slightly
upbeat about the development of
private equity-driven M&A this year.
The report says that a substantial
improvement is expected in the
availability of attractive acquisition
targets. The situation in the financial
markets and the development of the
euro crisis are expected to improve
slightly.
Some 52% of those surveyed expect to
see an increase in the number of
transactions. Scandinavia and Germany
are seen as the leading countries for growth of private equity-driven M&A activity in 2013. Poland, the UK
and CEE should grow slightly as well, while declines are expected in Iberia, Italy, France and Greece
The sectors in favor are Pharma/Healthcare and Consumer Goods/Retail. Energy/Utilities as well as
Technology & Media sectors are ranked second. At the bottom of the list are Automotive and
Building/Construction. The mid-cap segment is forecast to dominate with a whopping 91% of the
respondents expecting most deals businesses with values of less than EUR 250 million.
PE TO PUSH EUROPEAN M&A DEAL
MAKING IN 2013
This week’s deal of the week is a USD 2 billion buyout for Yankee
Candle. The US company has attracted offers from several private
equity firms, according to unnamed sources, according to an
exclusive by Reuters.
Some of the bidders are said to be Bain Capital, Advent
International., CVC Capital Partners., Clayton, Dubilier & Rice and
Ares Management. The company is owned by Madison Dearborn
Partners, another buyout firm, which acquired Yankee Candle in
2006 for USD 1.6 billion
Image source: Yankee Candle website.

5. 3
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The top 10 private equity managers control more than half of USD 959 billion in PE assets under
management by the 50 largest managers, according to a report in PI Online. The three largest, Oaktree
Capital Management, KKR and Bain Capital control almost a quarter of that total. Most of the managers
in the top 10 are household names, and half of them are public. Information for the report came directly
from the firms, their filings with the Securities and Exchange Commission and their websites. There is
also data about exits and new fundraising by the top 50 PE companies worldwide. Interestingly, the
researchers found that size does not matter when it comes to fundraising. Performance is what matters.
THE TEN LARGEST PE COMPANIES
CONTROL HALF PE AUM
“The first footage I saw of the Martin Jetpack
was interesting to me as an aviator, but it was
clearly limited in its commercial application.
Recently, the company achieved a number of
flight technology breakthroughs with their
latest generation Jetpack and that’s when I
really sat up and took notice. The team have
created an aircraft that is fast, agile, and stable
with a huge number of applications across a
number of sectors.”
Who said it: newly appointed CEO of Martin
Jetpack
QUOTE OF THE WEEK: PERSONAL FLIGHT
In context: The quote appeared in a press release this week. In a local news report the venture-capital
backed New Zealand based Martin Aircraft Company was said to be mulling an IPO. It is about to release
the First Responder Jetpack, a personal flight developed for police, search and rescue and other
government uses. A slightly modified version, the Personal Martin Jetpack, would be released in 2015.
The company is raising funds of ahead of a potential IPO this year. The public offer is to fund the
establishment of manufacturing operations and sales and marketing staff around the world.
It is not the only jetpack company on the market. Jetlev’s water-propelled Jetpack has also been getting a
lot of press lately. It looks like personal flight is not only the stuff of cartoons and Hollywood movies
Where we found it: Martin Jetpack website

6. DealMarket
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launch, DealMarket counts more than 52,000 recurring users from 154
countries, and over 3,000 deals and service providers promoted or listed
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helping Private Equity investors to capture, store, manage and share
their deal flow more efficiently.
DealMarket was voted the “Best Global Private Equity Platform for 2013”
by Corporate Newswire.
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Editor: Valerie Thompson, Zurich