To execute deals quickly, private equity (PE) businesses need immediate access to experienced resources. Private equity houses are involved in a wide range of transactions, from management buyouts of a division of a public company through to large scale leveraged buyouts of large listed businesses. Also, private equity funds are constantly in search of the right opportunities, and these are increasingly international. Cross-border capability is essential for successful deal-making.
Private equity lean business models mean that they need to work with professional advisers who have a deep understanding of their aims and strategies. We work closely with many clients in private equity, helping them to make acquisitions and advising them on their investment exits.
Our extensive network in Indonesia means that we can provide resources on the ground wherever they are required. The breadth and depth of our relationships allow us to spot opportunities for private equity investment by conduct due diligence such as objectively viewing the assets or business to be sold in the way that potential buyers will view them, taking steps to separate the assets or business before the sale, and presenting accurate, complete and transparent information.
More specifically, by viewing the assets or business through the eyes of potential bidders, we can help a seller:
- Streamline the process of providing complete, accurate information to bidders
- Ensure consistent presentation of information across geographies
- Identify areas where buyers may seek price reductions, indemnities or warranties, so that presentation and negotiation strategies can be developed in advance
- Ensure that EBITDA is not understated in financial projections and that balance sheet provisions are not overstated
- Assess risk of exposure through indemnities and warranties that bidders may request
- Ensure that bidders’ valuation of the business is based on identified, consistent assumptions, reducing the need for post-acquisition price adjustments
- Present bidders with well-defined and easily separable assets or business, resulting in a “cleaner” closing and transition process
- Plan transition service agreements to be made available, and at what cost
- Reduce uncertainty and expense in the sale process.