Private equity buyers a viable option for business owners considering a sale

Following on from last year’s highly successful RealDeals Private Equity Awards, Benchmark International is again proud to be a leading sponsor of this prestigious event in the M&A calendar.

As most business owners prefer to sell their business to trade or strategic buyers, which present good synergies, many overlook how Private Equity acquirers can assist in the most unlikely of sale scenarios.

The majority of business owners are unaware that Private Equity Groups constantly raise funds which in turn, have to be spent, otherwise they will attract penalties. A recent report indicated that ‘dry powder', in other words capital that is already committed but has not yet been invested, within the worldwide Private Equity industry ended at record highs for 2013.

With ‘dry powder’ at a record high $1 trillion and a short timeframe with which to deploy capital raised, pressure to invest in 2014 is substantial. Couple this with a continually strong appetite from both UK and international trade acquirers, demand and competition surrounding deals has never been higher.

How does this help you?

Competitive tension plays a major part in the sale process and having extra bidders enables Benchmark International to extract the best deal possible from your preferred buyer. Furthermore, many Private Equity Groups will already have a number of trading companies within their portfolio which may have a strong strategic fit with your business.

Unrivalled industry presence

Benchmark International’s involvement with events including both the RealDeals Private Equity Event and Awards, in addition to Super Return Asia, has made us a ‘household name’ within the Private Equity Sector. This has seen a number of successful completions for our clients which have been backed by Private Equity Groups with similar trading companies.

Summary

We firmly believe that ensuring enough competitive tension to maximise value can be strengthened by the presence of Private Equity Groups and individuals. Furthermore, with most Private Equity Groups preferring to get their business done early, there is still time to capitalise on market activity for your business.