Private Equity ServicesA holistic approach to meeting the evolving needs of private equityThe private equity industry is constantly evolving and as it grows, the types of services private equity firms require expand. What remains unchanged is the overall goal to create value. But savvy acquirers know that deal success doesn’t end when the deal closes. Value creation goes beyond the investment cycle to portfolio company management and fund support. Thus, private equity firms cannot be adequately served by supporting their M&A activity alone. Ernst & Young’s Private Equity practice offers a holistic, tailored approach that encompasses the needs of funds, their M&A process and portfolio companies while addressing market, industry and regulatory hurdles. With a global network of over 8,000 dedicated M&A professionals and more than 20 years of private equity experience, we can meet private equity firms’ and their portfolio companies’ evolving needs wherever they may need us. | Private equity, public exits- PE-backed IPO update, Q3 2009: the end of the drought? After a de facto shutdown of the capital markets and a calendar largely devoid of IPOs, a rally in public equities (pdf, 212kb) is restoring investor appetite for new deals. In Q3 2009, global proceeds from IPOs hit their highest point since early 2008, according to data from Dealogic, with 153 companies raising $34.66 billion. Proposal on improving disclosures about fair value measurements impacts PE reporting The FASB recently issued a proposed Accounting Standards Update, Improving Disclosures about Fair Value Measurements (pdf, 116.1kb) , that would amend FASB Accounting Standards Codification 820 (formerly FASB 157, Fair Value Measurements). The proposal calls for increased disclosures on Level 3 fair value measurements which impacts PE firms as they typically value their non-public investments based on Level 3 inputs. Limited partners perspectives on the future of private equity Limited partners globally agree that private equity remains an attractive asset class, but it will need to address challenges that have emerged in the last two years. "Shifting sands: limited partners perspectives on the future of private equity" (pdf, 163K) summarises the views of leading LPs about the future of the PE industry. Challenges in a new world How do private equity investors create value?
A study of 2008 European exits A review of how PE created value in nearly 300 European businesses over the last four years could provide some insight into how the industry can build on its success and also overcome the challenges it now faces. Our latest study shows that these businesses had average annual growth in profits of 15% during PE ownership. Download the report (pdf, 3.7M). New guidance increases the likelihood for general partners to consolidate certain funds The FASB recently issued revisions to the consolidation model relating to the consideration of kick-out/liquidation rights for PE funds that are variable interest entities (VIEs). The new guidance could cause (pdf, 475K) a GP to consolidate funds that are VIEs, even though the LPs have kick-out or liquidation rights. US private equity watch: an industry in flux — Ernst & Young's 2009 state of the industry report The industry has evolved from its early beginnings to today's business entrepreneurs. Currently, the industry is at a crossroad and is going through a transition. Where private equity firms invest and how they do business is influenced by an ever-changing landscape. Some believe there will be a shake-out, while others believe the industry will emerge to be stronger. The report discusses the two sides of the argument (pdf, 5mb), highlights the challenges facing private equity firms and covers possible lessons learned and deal flow. Changing terms: how modifying a company's debt affects financial reporting Many PE portfolio companies are seeking ways to restructure, replace or modify the terms of their outstanding debt to cut costs and strengthen their balance sheets. This PE Alert reviews (pdf, 83.3K) and illustrates the complex accounting rules for modification or exchange of debt instrument and the financial reporting consequences. PE insights...Unlocking cash: where are the opportunities? Unlocking cash (pdf, 117k) is crucial during an economic downturn. There are various ways companies can curb spending and cut costs to preserve cash. Conventional cash drivers examine common working capital functions, while unconventional drivers explore cash opportunities across the entire business. Portfolio companies of private equity firms can benefit from analyzing both means to improve their cash positions and liquidity. |
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