Increase your exit multiple by getting the expansion strategy right

In our latest article in Real Deals, Mike Callow and Simon Hemsley examine why increasing multiples and more competitive processes mean that it is now even more important for PE funds to get the right expansion strategy for their investments.

It has been a very busy year for midmarket PE investors. DC Advisory’s latest European Private Equity Mid-Market Monitor estimates midmarket PE deal volume in H1 2021 up 79% vs. H1 2020. Pricing is high across the board, and scaling new heights in hot sectors. It is even more important that investors have the conviction that business plans are achievable, that they can accelerate growth or improve multiples during the hold period, and that they understand the potential buyer universe at exit.

Because processes are so competitive, funds must carefully choose the deals to hunt. Understanding value levers and how they are aligned with an investor’s track record and house style helps triage deals and focus time on the most promising opportunities.

Read their article to find out how investors and management teams can build on insight from their commercial due diligence to develop expansion reports and what to expect from them.

Please contact Simon Hemsley, Mike Callow or any member of the Armstrong team if you would like help planning upfront for a successful exit.

Real Deals article

Simon Hemsley, Partner

+44 7957 340534
[email protected]

Email Simon

Mike Callow, Partner

+44 7894 594 500
[email protected]

Email Mike