The term “private equity” refers to capital that is used by investors to acquire share equity in established, revenue-generating companies.
Private equity can be used to unlock a business’s potential by providing the funds for restructuring, business succession planning and ultimately expansion.
Private equity can be a significant opportunity for a range of businesses, from those in need of revitalisation, to those looking for additional funding to scale and move to the next level, to those searching for an exit strategy.
The aim of private equity investors is generally to increase the value of a company and target a return on its investment. In looking to achieve that aim, the strategies of different private equity investors can vary. Some look to buy the entire ownership of a company, providing the existing owners with an exit opportunity. Others will target a majority or minority percentage and look to work with existing management and shareholders to help grow the business together.
Introducing a private equity investor usually involves the appointment of at least one non-executive director to the board of the investee company, introducing experience and a fresh outlook to senior management, processes and strategy. In addition, the investor can capitalise on its wider network and connections to help a business to grow, innovate and expand into new markets.
Our Corporate and Commercial team can assist businesses in all sectors with identifying and executing available opportunities.
George Kennedy, Corporate and Commercial Partner, comments:
“Over the course of 2017 and 2018, the Irish market has seen a number of successful exits for private equity investors, as well as a strong period overall for M&A activity. The recent management buyout (MBO) of H&MV Engineering is a prime example. There are significant opportunities in the market for exits, acquisitions, equity investments and MBOs. With a strong market showing the potential for high-multiples on valuations, it is a good time for Irish companies to explore their options.”
Private equity investment is a major financing opportunity and is becoming increasingly accessible. The capital, connections and involvement of a private equity investor can accelerate growth and development and drive a business towards a successful exit.