What the cancellation of the Travelport and the New Look IPOs did is create a huge buzz around whether the market is right for IPOs or not. Some of the reasons that have been highlighted for the market not being right are:

• Falling valuations in general – perhaps thanks to the negative impact of the Greek crisis and the negative financial data coming out of UK. This is in no way helped by the election uncertainty
• The lack of demand from fund managers for highly levered private equity exits. The general feeling is why should they be helping PE firms make the quick buck and invest in firms where the proceeds will go towards deleveraging rather than driving growth
• An increase in corporate M&As and buyouts rather than IPOs supported by the gradual opening up of the leverage markets

Let’s look at these beginning with valuations.