At a glance

Acquisition trends

Split Exchange and Completion88% of transactions had a split exchange and completion

EARN-OUTS15% of deals had earn-outs in 2022

W&I Insurance88% of transactions used W&I insurance, and of these 83% had a £1 cap on warrantor liability

Equity trends

Management ReinvestmentManagement reinvestment amounts remained steady at an average of 45% of proceeds (net of tax and costs)

Sweet Equity PotsThe average sweet equity pot remained at 16% of the ordinary share capital

RatchetsRatchets were used on 44% of transactions

Non-Dilutive FundingNon-dilutive further funding arrangements were agreed on 31% of deals

Leaver ProvisionsStrip equity was subject to some form of leaver provisions on approximately 73% of deals

Very Bad Leavers75% of deals had a fourth "very bad leaver" concept applying to certain securities

Debt trends

SONIABase SONIA sterling floating reference rates jumped from 20bps to 390bps in 2022

Senior Term Debt MarginsMargins increased by up to 100bps for senior term debt

Leveraged Loans and High Yield BondsRecord falls in leveraged loan and high yield bond volumes of 65% and 82%