Private equity (PE) investors continued to focus on technology and health care during the fourth quarter of 2019. Interest in the two sectors will likely carry over into 2020 as PE firms seek out investments that can disrupt traditional business models.
We expect that a variety of forces will drive PE activity in 2020. Ample capital, diverse sources of financing, rock-bottom interest rates, and direct participation by sovereign wealth funds will likely sustain a robust market. We expect that the availability of capital will buoy activity during the next slowdown.
“We saw record PE fundraising in 2019, with mega PEs and tech-focused PEs attracting the lion’s share of capital.”
Smart deal makers are perceptive enough to see value others have missed, flexible enough to adjust for the unexpected, aggressive enough to win favorable terms in a competitive environment, and circumspect enough to envision the challenges they will face from the moment the contract is signed. But in a business environment where information can quickly overwhelm, the smartest deal makers look to experienced advisors to help them fashion a deal that works.
PwC’s Deals group can advise private equity firms on key M&A decisions, from identifying acquisition or divestiture candidates and performing detailed buy-side diligence, to developing strategies for capturing post-deal profits and exiting a deal through a sale, carve-out, or IPO. With more than 9,800 deal professionals in 75 countries, we can deploy seasoned teams that combine deep sector skills with local market knowledge virtually anywhere and everywhere your company operates or executes transactions.
Although every deal is unique, most will benefit from the broad experience we bring to delivering strategic M&A advice, due diligence, and transaction structuring, M&A tax, merger integration, valuation, and post-deal services.
In short, we offer integrated solutions, tailored to your particular deal situation and designed to help you extract peak value within your risk profile. Whether your focus is deploying capital through an acquisition or joint venture, raising capital through an IPO or private placement, or harvesting an investment through the divestiture process, we can help.
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The information presented in this report is an analysis of deals in the private equity industry where the target company and/or the target ultimate parent company was located in the United States of America. Deal information was sourced from PitchBook Data, Inc.
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