How could your firm benefit from comprehensive, and private equity-specialized advisory services?
How does an experienced private equity team help you generate value from your investments portfolio and protect those against unforeseen risks?
Most investors and private equity firms expect a more dynamic market over the next two years. Thus, increases in asset purchases by private equity funds are expected by 60% and asset sales or divestments by 57%. 1
When it comes to the critical stages of investment - whether purchasing, scaling, or divesting, an holistic advisory framework helps to achieve optimal value from an investment. Combining in-depth practical, industry, and functional knowledge with superior quality finance, accounting, and tax acumen allows a qualified third-party to address pivotal deal determinants and quickly identify the source of potential issues.
1 En un mundo incierto, aumentan las fusiones y adquisiciones en América Latina, KPMG 2023 M&A in Latam Survey, KPMG, 2023.
1. Target screening
When it comes to managing private equity fund and portfolio companies, it’s necessary to have the support of a third party to pinpoint opportunities and targets that resonate with their overarching investment strategy. Beginning with an investment concept, close cooperation with a third-party, aids in identifying the most lucrative M&A prospects to chase.
Although the landscape is complex, a comprehensive approach and deep understanding ensure a simple path to better opportunities.
2. Due diligence
It is highly beneficial to have an approach that emphasizes an in-depth understanding of the broader risk-and-reward spectrum. Rooted in profound financial and accounting knowledge, an experimented third party can offer thoughtful perspectives across various disciplines, making complex decisions simpler and more confident.
Having an holistic strategy to deal planning and execution is vital. Considering all aspects of the business, including IT, Commercial, Operational, ESG, HR, and tax among other; a forward-thinking approach 2 is essential. It is fundamental to have the essential information and insights to aid prudent decision-making, risk mitigation, and to ensure the fairness of any deal.
2 KPMG Diligence Plus©
3. Value creation
To achieve the greatest value possible, it is vital to rely on an advisor who can use data analytics and sector-specific knowledge to identify opportunities throughout your business. The goal is to have tangible improvements in EBITDA and cash flow in both immediate and long-term scenarios.
Through the exploration of data analytics and interconnected processes, an experimented third party seeks to uncover potential areas of performance improvement inherent in each transaction.
4. Post-merger Integration and separation / carve-out support
When using a buy-and-build strategy to ensure you fully capture the benefits of scale and scope, an experienced post-deal professionals’ team can collaborate closely with you and your portfolio companies to conduct detailed integration and separation due diligence, fine-tune synergy estimates, prepare for the pivotal Day One, and to implement a strategic plan resonating with your objectives.
It is fundamental to use a wealth of functional, technical, and industry experience in streamlining the Integration & Separation process, custom-fitted to your specific transaction.
5. Accounting and financial advisory
In an increasingly complex business environment, technical challenges arise in the areas of accounting, taxes and financial reporting, so their management and resolution become a necessity to maintain the strategic objectives of the portfolio companies. When partnering with a specialized third party you gain a reliable ally providing incisive accounting advisory services tailored to your specific location or industry.
6. Digital transformation
Understanding the digital maturity of companies within the portfolio allows for effective prioritization of investments in digitalization capabilities. This should be assessed through a maturity matrix that determines strategic improvements that promote competitive differentiation and foster digital alignment.
EPrivate equities had committed an aggregated capital for Mexico amounting to more than USD 71 billion over the last 20 years. Of this amount, 36% is focused on real estate assets, 28% on infrastructure and energy, 23% growth capital as the three most relevant investment categories up to date. Private credit (5%), venture capital (4%) and fund of funds (4%) concentrate the remaining commitments.3
3 La industria de Capital Privado en México en 2023, Asociación Mexicana de Capital Privado (Amexcap), 2024.
Asset sourcing and disposal it’s not just about ensuring the success of the transaction, but about creating lasting value for business growth and transformation. To achieve this, it’s certainly necessary to have the support of a third party experienced in the life cycle of an investment.
Contact the KPMG Mexico team to receive specialized support tailored to your investment strategy needs, identifying risks, opportunities and areas of transformation for informed business decision-making.
Our services:
Investments in private equity call for deep understanding and strategic planning. At KPMG Mexico, we can help you navigate the complex life cycle of your assets and align the business objectives with your investment strategy.
― Target Screening
― KPMG Diligence Plus©
― Value Creation
― Post-Merger Integration / Separation /Carve-out support
― Accounting and Financial deal Advisory services
― Digital transformation
Contact KPMG's specialists, who are ready to work with you, shoulder to shoulder, to design a strategy for your business.
