Establishing a fund
Like any new endeavor, setting up a PE fund can daunting. There are questions around market opportunities and the size of prize as well as practical concerns on how to design investment structures, and how to best manage tax, financial and other regulatory requirements. That’s why our team of experienced assurance, tax and advisory professionals work with you at each step of the way– regardless if you are new venture, fund manager and portfolio company - helping you to navigate the do’s and don’ts of setting up a PE fund in China.
How we can help
- Fund structuring tax advisory
- Tax advisory and compliance
- Individual income tax
- Capital verification
- Annual audit
Sourcing deals
Generating and identifying solid leads requires a clear view of what type of investments your fund excels in. It also requires extensive knowledge and connectivity to the marketplace. In an increasingly competitive environment, how do you cut through the noise to find a strategic fit for your investment needs? And can you generate enough quality leads to outperform your competitors and sustain deal flow?
At PwC, we invest in people and relationships to help our clients throughout the deal flow process. Our people have extensive experience working with a broadbase of clients across all industries and many of our corporate finance specialists have worked in leading investment banks. As independent advisers, we make it a priority to help you meet your strategic investment needs.
How we can help
- Industry screening: includes access to industry insights, analysis on capacity and cost issues impacting profitability over the investment holding cycle, and advice on political and regulatory frameworks affecting potential investments
- Target and investor search: through a structured and robust screening process based on the industry review and investment criteria
- Buy-side advice: includes preliminary research and review to filter down list of prospective investments to be considered for full due diligence
Evaluating deals
Is this a good company and is the price right? This is the no.1 question that must be answered before any PE fund proceeds to the next phase in the deal flow process. Yet, there is no magic formula or right answer. Financial and commercial due diligence covering the company’s financial performance, commercial operations and earning potential against competitors or industry benchmarks are necessary and to identify growth drivers and risk factors which affect potential synergies and costs of acquisition. Meanwhile, valuation models can vary by industry making it more difficult for in-house teams to determine if “the price is right”.
At PwC, we have a team of strategy consultants and sector-specific deals, tax and audit specialists to put your needs first. With your objectives in mind, we leverage our industry perspectives and technical knowledge to recommend ways in which you can maximise value in structuring deals and negotiations.
How we can help
- Financial and tax due diligence
- Commercial due diligence
- Operational due diligence
- Deal structuring and valuation
- Deal structuring tax advisory services
- PE accounting advisory
- Closing audit
Post deal
The first hundred days after closing can determine the success of merger and integration. How do managers turn a newly acquired business around and realise synergies? What should be the priority: enacting cost savings, optimising operations, motivating people or all of the above? In divestitures and carve outs, short term fixes such as a transactional services agreement may be needed to sustain operations until a longer term solution is ready. Meanwhile, the reality is that a range of performance improvement measures are concurrently needed, requiring both attention to detail and expertise in areas such as financial reporting, tax regulation, IT and operations, human resources and internal controls.
How we can help
- Value creation plan and delivery from day 1 through to day 100
- Monitoring performance of portfolio companies
- Tax compliance
- Accounting advisory for portfolio companies
- Finance function effectiveness and internal control advisory
- Annual audits of portfolio companies
Exit
A successful exit, be it through an initial public offering, strategic acquisition, secondary sale or management buyback, requires forward thinking and planning to ensure that the right pieces are in the right places at the right time to maximise both fundraising potential and an investor’s return on investment. Our team of specialists can work with you to assess your options at each step along the way, sharing our global insights on fundraising, origination, capital markets developments and listing requirements in China and international stock exchanges.
How we can help
- IPO audit and related advisory services
- Funding raising support for portfolio companies
- Vendor due diligence and assistance
Amanda Zhang
