Exiting and realising Private Equity gains
From day one of taking PE investment, you should have one eye on your exit and how you will realise the gains in value. Your initial ‘equity story’ should have had some indication of how exit would be realised, by identifying potential buyers for the business.
The process for securing a deal that realises gains and ends in your current PE investment cycle is largely the same as the one you went through to find your PE investor in the first place. Certainly, many of the key stages are the same.
There is, however, a single factor that changes everything. Any deal must satisfy your current PE investor’s need for the best possible return on investment. It will largely define the success or failure of your PE experience. It will also affect your choice of investor for the exit deal. This is why planning the exit from the start is important, so you’re on the same page as your investors.
A further consideration is whether you and your management team want to continue to manage the business. If you do, aligning interests on the choice of the next investor will be very important. Conversely, you may be looking for a complete exit, which may impact on the value of the business and returns your investors can make.
How BDO can help
The BDO Private Equity group will provide you with all the support you need to complete the optimal deal at the end of a PE investment. Whether you are trying to exit, or want to continue leading the growth and development of your company, we will help you find the right way forward with your current PE house. This may range from a trade deal to a further round of PE investment, or an Initial Public Offering.