Adding Value in Private Equity

Lessons From Mature and Emerging Markets
Erscheinungsjahr 2006
ISBN: 978-1-84374-218-0
Verlag: Euromoney

Buch, Englisch, 267 Seiten

"a first class 'user guide' on private equity investment. each aspect of investing is covered. a comprehensive guide for each step along the way" Geoffrey Bell, President of Geoffrey Bell and Company, Founder and a member of the Group of 30 and Governor of the London School of Economics.

Adding Value in Private Equity: Lessons from Mature and Emerging Markets has been written by Eric D Cruikshank, a former manager at the International Finance Corporation (IFC), who shares his experience of overseeing decades of private investment in both mature and emerging markets. This practical guide is your key to understanding the events and strategies which can add or undermine value in private companies throughout the investment period and exit. Essential reading for private equity investors: owner entrepreneurs, managers, specialist PE investors, their advisors and consultants.

Investors are looking further a field to locate suitable private equity investments, and adding value is critical to a successful investment. Adding Value in Private Equity: Lessons from Mature and Emerging Markets will explain to you:

The different stages of private equity funding, including for VC/start-ups, expansion capital, acquisition and buyouts, the uses of mezzanine financing and distressed equity.

How to determine value in private equity. For newcomers and seasoned hands alike, there is an extensive discussion of the different valuation models and their application and limitations in private equity valuation.

The effects of globalisation on private equity values. Find out how to develop a sound strategy to maximise the opportunities afforded by the global economy through investing in emerging market private equity, and through sourcing suppliers and partners in efficient supply chain management, how to add value to your PE investment.

How to ensure value addition prior in the pre-investment stage: practical steps for screening, due diligence, the timing of and phasing the investment, including the differences encountered by emerging market PE investors.

Deal structuring, not only to preserve value, but to redistribute value if things do not turn out as planned. Valuation, and "thinking the unthinkable" in terms of events and actions that would bring about risks and uncertainties that need to be addressed in the context of deal structuring.

Post-investment adding value through innovations and organisational and financial restructurings.

Corporate governance of private equity firms, including case studies illustrating the obstacles in the governance of emerging market investments.

Adding value in the exit strategy: what are the exit options, including IPO and liquidation, to each of the participants in the investment and how to find accommodation between the financial and non-financial drivers of the owner, the manager and other PE investors. Describes the often-neglected aspects of recovery and closure from the perspectives of reputational risk and legal liability. Exiting from emerging market PE investments. Legal and regulatory issues in divestment.

Tools such as scenario writing, contextual mapping, real options and Monte Carlo Simulation to understand the range of values that the enterprise and equity can assume, which will help guide the PE investor in weighing prospective trade-offs when assigning priorities to value adding activities.

Autoren/Hrsg.

Cruikshank, Eric D

Fachgebiete

• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Anlagen & Wertpapiere
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Internationale Finanzmärkte
• Wirtschaftswissenschaften Volkswirtschaftslehre Internationale Wirtschaft Internationale Finanzmärkte
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Unternehmensfinanzierung
• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen Finanzierung, Investition, Leasing

Über Autor(innen)

Eric D Cruikshank is an economist and finance specialist with 35 years of professional experience in more than 40 countries. He is currently the chief executive officer of EDC Merchant Banking Advisors, a position he has held since retiring from the World Bank Group in 2005.

At the International Finance Corporation (IFC) he was most recently Chief, Special Operations in which capacity he spearheaded a highly successful and profitable program of “managed exits” from a large number of IFC’s older private equity investments. Prior to that, other positions he held in IFC, involving inter alia various aspects of private equity investing, were regional manager, manager of portfolio operations and credit review, and principal investment officer. He also served as IFC’s nominee on several company boards.

Before joining IFC, he served as a World Bank loan officer, senior economist and deputy resident representative. He was a Canadian International Development Agency (CIDA) advisor in several countries and an executive project director for an energy and water resource team in Nepal. During the earlier part of his career Mr. Cruikshank was a senior consultant in a global managing consulting firm for four years, a senior securities analyst at a stockbrokerage firm and member of a CIDA-sponsored advisory team helping the government of Kenya write its fourth five-year economic plan.

Mr Cruikshank holds a BA in economics from Mount Allison University and an MBA and MA in Economics from York University.