Private Equity has been saved
Making more returns
Deloitte's Australian Private Equity Group is part of Deloitte’s Global Private Equity practice comprising over 1,500 private equity professionals globally.
As leverage multiplers increase and credit becomes more available, private equity has been an active driver of capital markets. But the market has been characterised by high prices for quality assets and with a backdrop of forecast low economic growth in the medium term, private equity firms will need to work harder and smarter if they’re to generate superior returns.
We work with Australian and global investors, funds and private equity backed businesses to deliver value across the entire private equity investment lifecycle.
We recognise that private equity backed companies face a unique set of challenges, characterised not only by their ownership and funding structure, but also the lifecycle they follow through the investment period. Our dedicated team work closely with clients to provide bespoke business solutions to management teams of private equity businesses - regardless of their size, location or industry.
Deloitte Private is dedicated to providing specialised advice to privately owned businesses. Deloitte’s private client base is the largest in Australia which gives Deloitte a unique perspective on acquisition opportunities for private equity firms.
Our Private Clients team are experienced advisors and understand where private equity may be able to assist their clients in the provision of growth capital or in facilitating an exit from their investment.
Differentiated due diligence
Deloitte provides comprehensive financial and tax due diligence on acquisition or sale of private equity businesses, providing a detailed understanding of the key drivers and risks associated with any business to vendors and acquirers alike.
We add value in both analysis and in the design of sale and purchase adjustment mechanisms which facilitate smooth deal completion and assist in avoiding any value leakage from poorly structured mechanisms.
Commercial Due Diligence
Our commercial due diligence team treats each engagement as unique and draws on industry experts within the firm to provide relevant commercial advice on the industry in which any target plays.
We include Deloitte Access Economics macroeconomic, microeconomic, and financial forecasting and modelling, as well as policy analysis, in our commercial due diligence offering.
Data analytics is also part of our approach. Our team has recently completed some innovative studies using large data sets and historical analysis combined with economic forecasting to generate predictive forecasts. This can be used to cross check our commercial due diligence to provide a data-backed view of managements forecasts.
The combination of industry experts, the Deloitte Access Economics team, and data analytics expertise provides a unique combination for those truly seeking differentiated due diligence.
Our team has played important roles in assisting private equity portfolio companies:
- Free up working capital and focus on cash
- Reduce costs through better procurement processes
- Restructure underperforming businesses to maximise value
- Assist with niche or core strategy around matters including digital, customer engagement or other key growth indicatives.
Our dedicated Private Equity Audit team plays a critical role in assisting portfolio companies and funds alike. Our audits are not just about compliance. We focus on identifying key areas where reporting can be improved to align company strategy with deal thesis.
Each member of our Private Equity Audit team from Partner to Analyst has experience with private equity and the specific requirements and focuses involved in analysis of private equity owned businesses.
Deloitte provides comprehensive vendor due diligence for private equity firms looking to exit through a trade sale ensuring that issues are uncovered and dealt with early to avoid value leakage during the process.
In addition, our team has worked on five of the largest private equity IPOs in the last 12 months using our private equity and IPO experience to add value to what are intensive and time pressured processes.
The approach that private equity firms take on exits is becoming increasingly scientific, often with early engagement of prospective buyers to educate them on the business as it grows. Deloitte’s advisory team has proven experience in leading sale mandates for private equity and large corporates.