Private Equity firms and funds
BDO delivers a full range of due diligence, tax, operational advice and advisory services to Private Equity (PE) firms, portfolio companies, funds and investors. Whatever opportunity or challenge you face, we have the people with the private equity experience and skills that can make a difference to your return on investment.
The BDO Private Equity group is made up of experienced advisers who have made PE a cornerstone of their careers. BDO has always been the natural partner of entrepreneurially-spirited, ambitious mid-sized businesses that take PE investment. We work with over 12 thousand companies and businesses, many of them PE-backed. We use our experience, passion and knowledge to improve how they operate. We already work closely with your prospective portfolio companies or businesses like them.
This wealth of PE knowledge and experience means we understand the motivations and personalities of PE firms, funds and investors. We help PE firms find and transact the right deals and deliver the rates of return and growth that they and their funders are looking for.
BDO PE specialists regularly support PE firms in completing deals and investments. We have a full-scope buy-side offering including sector or sub-sector mapping, approaching and introducing investment opportunities, modelling, valuation, assistance with writing investment committee papers, exit papers, buy & build target identification and analysis, debt advisory, project management and negotiation support, often as part of a team including tax and due diligence professionals, from BDO and other firms, and lawyers.
We offer insightful and detailed knowledge because we know and have worked with the target or we know and have worked with similar businesses. We also understand the vendor mindset, especially that of the entrepreneurs that lead potential portfolio companies. We will help you find the common ground and understanding that will set you apart from other potential investors and more likely lead to a successful investment.
Transaction services and Due Diligence
Due diligence work is about removing any unwelcome surprises and mitigating risks, ensuring that PE firms and investors have full visibility of all issues and risks. You want to understand fully the business you are looking to invest in and know the risks and opportunities of a transaction.
Our sector expertise and mid-market experience mean that we are well placed to carry out due diligence on portfolio companies in most sectors of the economy. We regularly and routinely carry out both buy-side and sell-side due diligence work. We understand the pressures PE firms are under and the importance of getting the due diligence and broader transaction services right first time, every time.
Our transaction services work includes financial due diligence, tax due diligence, IT and operational due diligence. We also have expertise in the negotiation of completion mechanisms and SPA advice.
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Fund audit and tax compliance
We work with Private Equity firms to help them comply with their local tax filings and provide annual tax reporting information to their investors and executives. Our PE tax team understands the nuances of private equity structures and works with technology to deliver flexible systems, processes and robust tax reporting solutions. We also advise private equity investors and executives on their personal tax positions with a particular emphasis on complex situations such as the UK remittance basis, carried interest and managing tax credits for US taxpayers.
Our team focus on providing advice covering the tax consequences at the time of acquisition, throughout the period of ownership and on exit. Our goal is to provide investors with a real understanding of the overall post tax returns. We combine pragmatism with expertise to suggest structures that fit with the fund’s commercial aims. Our people are skilled in understanding the issues of all stakeholders to a transaction including not just the underlying corporate but also management teams, GPs and investors so we can help devise a best-fit solution.
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Operational improvement for portfolio companies
We work with a large number of PE-backed businesses. We understand how portfolio companies operate, their challenges and their ambitions. Our sector-specific expertise and tailored advice makes a difference to their bottom line. Our aim is to help them achieve the accelerated growth and rates of return that their investors expect.
Our financial and operational advisors will help portfolio companies identify and implement improvements to their financial and operational effectiveness. Our experience is that our clients benefit more from our advice when they involve us as early as possible in tackling improvements.
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We understand that a portfolio company is always for sale for the right price. Preparations for sale and exit should start from day one in order to prepare for the best outcome. Our PE specialists will work with you to prepare for a successful exit. We will undertake an “exit readiness” review and deliver Vendor Due Diligence, support the creation and maintenance of a Data Room, as well as reviewing all financial, tax and operational arrangements to ensure that the portfolio company achieves the best return possible.