Never in the last 18 years of corporate finance have I seen such an appetite for investment from the private equity investment community. It goes without saying that the past 12 months has had an impact on every business in positive and negative ways, however the show must go on.
Due to a proportion of business adversely affected by the pandemic and restrictions in place, the number of opportunities for private equity investment has reduced as you would expect. Over the past six months, we have seen some very strong interest in businesses we have been advising from the PE market, with valuation multiples and the general flexibility around deals improving significantly.
You may not know much about private equity investment or have a pre-conceived view that it isn’t for your business, however we would highly recommend that you fully understand the benefits and potential upside that taking on an investment partner can bring.
With continued uncertainty around capital gains tax and entrepreneurs relief, could it enable you as a business owner to diversify some risk? Would an investment partner open new doors to new markets? Would you benefit from a partner assisting with a significant growth plan or expansion overseas?
These are some of the questions worth asking yourself as from our experience an investment partner can certainly add value when it comes to some of these areas. The investment directors have to generate a return on their money, therefore seeking out well placed businesses to work with is very much on the agenda.
The next steps
The UHY corporate finance team has a significant wealth of knowledge and contacts across the UK private equity marketplace and if you are a business considering your options, we would very much recommend you get in touch for a no obligation chat in confidence to understand more.
