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How do private equity investors create value: Improving outcomes at the time of private equity exits - EY - Global

How do private equity investors create value? (European Study)

Improving outcomes at the time of private equity exits

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Our study shows that the vast majority of 2010 exits that were sold to trade or private equity buyers prepared robust information to provide to prospective buyers, and over 80% had vendor due diligence reports.

Selling well: crucial to private equity success

Selling well is clearly an important factor in the success of an investment. No matter how much performance has been improved under PE ownership, if a sales process is not well-managed, a great deal of value can be lost, particularly in a challenging economic environment.

The 2010 exits showed that PE owners were proactively seeking potential buyers and engaging with them well in advance of a sale. PE has encouraged management to go on roadshows, maintain contact with advisors and meet with potential buyers months, and in some cases years, before a sale was anticipated.

Our study shows that the vast majority of 2010 exits that were sold to trade or PE buyers prepared robust information to provide to prospective buyers, and over 80% had vendor due diligence reports. Of these exits to PE and trade, the only instances in which vendor due diligence wasn’t used, bar one, were those in which PE was unexpectedly approached by a buyer or there was just one buyer involved.




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