Pubs are 'Marmite' for investors

By Ewan Turney

- Last updated on GMT

Related tags: Private equity, Venture capital

Many private equity investors believe valuations will fall in pub sector
Many private equity investors believe valuations will fall in pub sector
The pub and leisure sector is "Marmite" for private equity investors — they either love it or hate it, according to a new survey. Research by BDO...

The pub and leisure sector is "Marmite" for private equity investors — they either love it or hate it, according to a new survey.

Research by BDO revealed that 40% of mid-market private equity houses believe that valuations in the leisure and hospitality sector will continue to drop over the next 24 months.

One third rnarked the sector in the bottom three for attracting investment. But there are some enthusiastic investors out there.

Nearly one in five private equity houses rank hospitality in their top three sectors for enjoying the highest growth in Mergers and Acquisitions valuations. 

"Private equity are preparing for huge ramp up in investment activity with over 90% saying they need to increase the rate of investments and close more deals," said corporate finance director Will Baxter.

"But leisure and hospitality is the Marmite sector.  Buyers and investors either love it or hate it. Knowing the right investors to discuss M&A with is essential." 

He added: "With high demand for deals now evident and the emergence of a core of enthusiastic investors in the leisure and hospitality space, owners of growing businesses who are quicker to bring their business to market may get a better price because if they beat the rush next year they will get special attention."

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