Get the right Private Equity deal
Once you’ve decided that Private Equity (PE) is the right path for your entity, finding the right investor can be a challenge. Effectively, you’re about to ‘sell’ your business (or at least a part of it) to an investor who will become a key stakeholder, be represented on your board and, sometimes, on your management team. With this in mind, your focus should be on finding an investor who shares your vision, aligns with your values and will work fluidly as your business partner.
How BDO can help you make the right Private Equity deal
BDO offers end-to-end support throughout your PE deal. From defining your aspirations through to deal completion and beyond, we’ll guide you on the journey, helping you navigate challenges and avoid common mistakes.
BDO provides advice and support at three core stages:
- Readiness and preparation
- Deal completion.
1. Readiness and preparation
During this stage, you must articulate the equity and exit story you will take to investors. This includes formulating and finalising your business plan and marketing strategy - ensuring it communicates and supports your story with evidence and facts. It’s important to recognise, anticipate and provide plans to mitigate areas of potential risk and challenge.
You must take into account, that typically you’re in partnership with your private equity backer for three to five years. Therefore, you must establish the PE deal fundamentals with thorough information to support your deal; including, agreeing on a timetable and approach with stakeholders.
How we can help
BDO’s Private Equity Group prepares you for a PE Deal with advice in all facets of your business to complete a deal. Whether it’s assisting in formulating your equity story, planning resources or project management.
Our services include:
- Defining what success means to you, your team and your business
- Developing a robust business plan, including an underlying financial model with a returns analysis
- Deciding on your deal strategy to match your goals, by looking at price, types of potential investors and timing
- Creating plans and providing solutions to overcome operational issues
- Building a secure and comprehensive online ‘data room’ with information and content for investors
- Preparing the Information Memorandum and other accompanying selling materials
- Preparing Vendor Due Diligence including tax and financial information
- Analysing the PE market and tracking market activity to determine optimal launch point.
With stakeholders aligned around a clear definition of success and a business that is geared for sale, you are ready to take your investment hypothesis to investors and generate awareness and competitive tension.
How we can help
The services we can provide include:
- Build and rehearse a credible management presentation
- Lead buyer interactions
- Manage investor enquiries and multiple advisors
- Identify and deal with difficult issues and questions
- Understand and guide valuations to drive meaningful offers.
3. Deal completion
Now is the time to move from a shortlist of potential investors to securing a deal with a single investor. Conversations will shift from informal to non-binding, to a final Sale and Purchase Agreement (SPA). This will involve legal, tax and financial advisors on both sides and a great deal of high-pressure negotiation.
How we can help
The services we can provide include;
- Manage interactions with all legal, tax and financial advisers
- Negotiate final offer to completion
- Ensure that risk and rewards are balanced
- Deliver an optimal tax structure.
The support we offer does not end here. BDO can continue to assist beyond the finalisation of the deal by preparing the management team for the next stage of the PE process. This is the next challenge in delivering on the equity story and driving the growth investors are expecting.