The number of management buyouts (MBO) in Ireland rose 44 per cent in 2000 but the value of the companies involved dropped by 83 per cent relative to 1999 levels.

Some #256 million (£202 million) was spent in 13 MBO deals in 2000 compared with #1.47 billion on nine MBOs in 1999, a joint survey conducted by accountancy consultants Deloitte & Touche and Barclays Private Equity shows.

Despite the drop in value of the deals, the MBO market remained buoyant, Deloitte and Touche said. "This [drop] does not imply a downturn in buyout activity, but is a reflection of the unusually high value deals which took place in 1999 - the Clondalkin and Cantrell & Cochrane buyouts," Mr David O'Flanagan said.

The #736.5 million leveraged buyout of Cantrell & Cochrane by management from Allied Domecq was backed by London-based BC Partners and was the largest buyout of an Irish company. The #385 million MBO of printing group Clondalkin was the first of an Irish publicly quoted company.

In 2000, Adare Printing's MBO was one of two public companies taken private and was the largest MBO deal that year with a value of #161 million. Shareholders in the Jones Group also voted in favour of a management buyout worth #13.2 million in February 2000.

"The conclusion of the findings in Ireland is that there remains a strong MBO environment here," Deloitte & Touche partner Mr Frank Bowen said. He said MBOs would always flourish in an environment of economic growth. "Fundamentally the management will be looking at the venture capital funds and that scenario is best in a growth environment."

Where the funding comes from often depends on the size of the deal. Transactions above #20 million would generally be sourced outside of Ireland.