Assistance for Private Equity firms and funds
BDO is a leading advisor to PE and Venture Capital globally*
BDO delivers a full range of due diligence, tax, and advisory services to Private Equity (PE) firms, portfolio companies, funds, and investors. Whatever opportunity or challenge you face, we have the people, with the right private equity experience, and skills that can make a difference to your return on investment.
BDO has always been the natural partner of entrepreneurially spirited, ambitious mid-sized businesses that look towards PE investment. We use our experience, passion, and knowledge to improve how they operate.
This wealth of PE knowledge and experience means we understand the motivations and personalities of PE firms, funds and investors. We help PE firms find and transact the right deals and deliver the rates of return and growth that they and their funders are looking for.
We offer a full-scope of buy-side assistance including:
- Approaching and introducing investment opportunities
- Modelling and valuation
- Assistance with writing investment committee papers and exit papers
- Buy and build target identification and analysis
- Project management and negotiation support (often as part of a team including tax and due diligence professionals, from BDO and other firms)
BDO’s difference is our insightful and detailed knowledge gained from working with many targets and similar businesses. We have intricate knowledge of the vendor mindset, especially that of the entrepreneurs leading potential portfolio companies. We will help you find the common ground and understanding that will set you apart from other potential investors, increasing the likelihood of successful investment.
Transaction services and due diligence
Due diligence work is about mitigating risks - ensuring that PE firms and investors have a holistic understanding of the business, including the risks and opportunities of a transaction.
Our expertise means that we’re well placed to carry out due diligence on portfolio companies. We routinely carry out both buy-side and sell-side due diligence work. Our transaction services work includes:
- Financial due diligence
- Tax due diligence
- IT and human capital due diligence.
We also have expertise in the negotiation of completion mechanisms and Sale and Purchase Agreement (SPA) advice. At our core, BDO understands the pressures PE firms are under and the importance of getting the due diligence and broader transaction services right the first time, every time.
Fund audit and tax compliance
We work with Private Equity firms to help them comply with their local tax filings and provide annual tax reporting information to their investors and executives. Our tax team understands the nuances of private equity structures and works with technology to deliver flexible systems, processes and robust tax reporting solutions.
We provide invaluable advice surrounding the tax consequences at the time of the acquisition; throughout ownership, and at an exit to articulate a realistic picture of the overall post-tax returns to investors. We combine pragmatism with expertise to suggest structures that fit with the funds' commercial aims. We are skilled in understanding the issues of all stakeholders to a transaction, including the underlying corporate, management teams, GPs and investors and will devise a best-fit solution for all.
A portfolio company is always for sale for the right price and planning for sale and exit should start from day one to prepare for the best outcome. Our PE specialists will work with you to prepare for a successful exit. We will undertake an ‘exit readiness’ review to ensure that the portfolio company achieves the best return possible, this includes:
- Vendor due diligence
- Support the creation and maintenance of a Data Room
- Review all financial, tax and operational arrangements
* Pitchbook M&A advisor league table (2018)