Private Equity — supporting the recovery of the indigenous Irish economy

A snapshot of Private Equity in the Irish market

This is the first in a series of four articles where we examine the current Mergers & Acquisitions (“M&A”) activity in Ireland with a focus on private equity (PE) – an industry that has grown rapidly from nascent beginnings less than a decade ago. Although M&A has historically thrived in more benign economic conditions, PE funds continue to seek out opportunities amidst the uncertainty that persists today. Current market conditions are demanding an increase in creativity and tenacity from investors and businesses alike; and this is apparent in the types of processes and deal structures we are seeing in the current market.

This article aims to equip you with our key market insights to support you in considering the strategic direction of your business as we continue to deal with the ongoing challenges of Covid 19. We provide a snapshot of PE activity in the Irish market and discuss six key themes that we have seen emerging over recent months:

01. A bifurcated market where resilience is key.

02. Strong valuations for quality businesses but with some creative deal structuring evident.

03. Due diligence is in focus more than ever.

04. Elongated processes and the enhanced role of a local advisor.

05. PE process dynamics.

06. Post deal information requirements and digitisation.

In our next instalment we will do a deeper dive into transaction structuring and valuations trends since the arrival of Covid-19, followed by perspectives from the key lenders that support PE activity in Ireland. Our final offering in the series will focus on the outlook and predictions for the year ahead.

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