According to McKinsey’s latest ‘Global Private Market’ report, private equities’ net asset value has grown seven-fold since 2002, and twice as fast as global public equities. In fact, Private Equity (PE) fundraising has grown 18% annually since 2015, and expectation is that when the recovery comes in the economy, PE money will not be far behind. There might even be some bargains to be had.
At Eton Bridge Partners we believe this only makes the business of understanding what happens during a PE buyout even more important. CEOs and CFOs I talk to are increasingly discovering a hitherto unknown, (but increasingly vital), service their management teams need to enlist when they enter a PE buyer’s buying funnel – getting in an essential intermediary to ensure their interests will be maintained.
Marcus Shah recently caught up with Simon Hill, Partner, Liberty Corporate Finance, one of the leading management advisory firms that tasks itself solely with negotiating the management’s incentive plans, typically working alongside specialist legal and tax advisors. They do it for the people most directly impacted; the members of the boards themselves on purchased companies. Simon’s business has dealt with transactions right across the value range from mid-market to large cap, has advised more than 300 management teams, and faced 100-plus equity houses. In short, if it has happened in Private Equity, they’ve seen it.