Is the 'deal well' drying up?
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US' sub-prime mortgage collapse, global money market liquidity crisis and a UK bank run! Not a great environment to be looking to syndicate debt for the current deal pipeline even worse for raising new debt to finance future deals. With a new dawn comes a new opportunity, or a chance for the Private Equity to illustrate its true value to the economy. It's unlikely we'll return to the days where businesses could be bought, refinanced with cheap debt and sold back into a rising market, a couple of years later, without much in the way of fundamental strategic or operational transformation.
Deals are there to be done where strategic and operational expertise is applied to businesses that have either lost their way or fester under the shadow of a global owner.
The winners in tomorrow's Private Equity sector will be those that acquire and deploy deep sector experience allied to motivated management teams, suitably incentivised.
Many will argue that this is what they've always done. Recent studies into the returns generated by Private Equity would argue otherwise. Either way, with debt to fund deals drying up we'll know soon enough where the talent for creating value resides.
As a specialist in the Financial and Business Service sector, Integration Associates is ideally positioned to assist Private Equity funds, with an interest in this sector, to assess opportunities to create value from investment in the sector. More importantly we commit resources and work in true partnership, for as long as it takes, to realise significant value for investors.
If you would like to know how we can help please contact us: