As you look to grow your business or look to change the shareholder base, it’s imperative to understand the options that will enable you to achieve your strategic objectives, both in terms of financial investment and operational insight.
The private equity industry supports management teams by providing capital to fund growth, or restructure shareholdings; and, if required, by enabling the business to access the expertise needed to help it continue its growth trajectory while aligning investor interests with management through equity incentivisation.
At KPMG, we have strong embedded relationships with all the key private equity firms both in the UK and Internationally. We have relationships with firms which invest across the entire spectrum of deal sizes. We have sold businesses to them and bought businesses for them. Most importantly, we know what makes them tick, what they are looking for in the new opportunities and how they assess value.
Our understanding of the private equity industry allows us to provide the best possible advice and offer market leading solutions across the lifecycle of a private equity backed business, from initial investment to a successful exit.
Given our understanding of the investor population, we are ideally placed to help you find the right partner, based on deep understanding of their investment focus and partnering style. Once we’ve helped you find the right partner, we’ll help you negotiate an optimal deal and work with you through the investment cycle to achieve the best possible outcomes.
UK mid-market private equity deal review 2020
KPMG’s latest study of UK transactions involving private equity investors indicates that a total of 889 deals completed over the course of 2020, with a combined value of £87.2billion. This was the fewest number of private equity transactions seen in the UK since 2014, and a fall of 26 percent on the previous year.
Mid-market PE deals were particularly impacted by the challenges brought about by the COVID-19 pandemic, with both volumes and values falling by a third on the previous year. In total, 452 mid-market transactions completed during the year, with a combined value of £28.5billion.
However, while total annual deal volumes were ultimately hampered by the cliff-fall seen in the second quarter, there was a clear bounce-back in activity in Q3 and Q4. Deals that had been put on hold sprung back to life, and PE investors, still sitting on substantial reserves of capital, mobilised once more, resulting in over two hundred transactions completing in each of the final two quarters.