Our report, available to download below, indicates that the effects of coronavirus will exacerbate the reasons behind 2019's increase in private-equity backed public-to-private (P2P) takeovers – resulting in a marked acceleration of P2Ps in H2 2020
It has been compiled from a survey of leading mid-market UK private equity firms and their corporate finance advisers. It looks at the reasons for the 2019 resurgence in take-private activity to gauge how the market may react following the easing of lockdown measures.
The report identifies three key factors for P2P activity, being:
- increased competition for private assets among PE houses
- a lack of opportunity to acquire privately-held businesses
- the better value proposition provided by listed targets.
These interlinked drivers have been exacerbated by the Covid-19 crisis and look set to remain a feature of the deal landscape. The report also analyses the main deterrents for mid-market private equity firms engaging in P2P - notably lack of certainty of outcome, complexity and cost, and a skills gap where PE houses were not familiar with the takeover process.
We are aware from our conversations with PE sponsor clients following the outbreak that PE’s focus will increasingly be on the listed sector for the foreseeable future, both for P2Ps and potentially also strategic private investments in public equity (PIPE) transactions.
If you would like to discuss this survey in more detail, please contact your usual AG representative.
Download the reportClick here
Here are just a few key P2P trends in numbers
Of PE houses were actively considering a P2P transaction
Approximately two-thirds of those surveyed had never carried out P2P or only done so over 5 years ago
Actively advised on a P2P mandate in 2019 and 83% reported an increase in P2P activity
The three key factors driving 2019's P2P resurgence – increased competition, lack of opportunity, and value proposition
To obtain a copy of the report, please complete the form below.