The tools in the armoury of the PE house that can influence the success of the investment program lie in the deal flow and assessment process. Clarity of strategic industry focus and targeted deal size are key to building relationships in the investment community. How effectively our clients present to the market, and the strength of their contacts will drive their deal flow. Our PE professionals have an established record in helping clients with their deal flow.
Transaction advice in today’s market goes beyond a mere review of the historical financials. It focuses on the potential to create value, quantifying the risks and uncertainties inherent in the deal. By leveraging KPMG’s global network of PE knowledge and experience, we can help you achieve a thorough understanding of the target business, the markets it operates in and the key operational challenges it faces.
We provide a view as to whether sales, cost and cash flow projections are supportable so that you can price a deal effectively. We also seek to identify value-adding opportunities not identified by management or a vendor, which can provide the key to winning an auction.
To help deliver this we can build a team that suits the PE house needs based on individuals with the appropriate deal experience (e.g. Leveraged Buy-Out (LBO), Management Buy-Out (MBO), early stage, turnaround and sector experience).
We understand that buying a business is not the end of the deal — a successful deal is when the exit results in a good return. Consequently we see our transaction evaluation services as the first step in helping you create value.