Private equity

Our practice provides solutions to a host of issues and technical challenges, from finding the right deals and evaluating the risks, to sourcing the best specialists to see it successfully established.

Unlocking the complexity of private equity 

The intelligent approach is to have a single, dedicated financial adviser in tune with your objectives to connect you to the right resources, at the right time, ensuring success at each stage of your transaction.

PwC slices through the complexity of private equity and offers lifecycle support – from inception to acquisition to post-deal support and exit. Our expertise spans a range of private equity services to support your needs in tax services, due diligence, IPOs, joint ventures, mergers & acquisitions and more. It’s all delivered through one team, one point of contact and one goal – your success.

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Delivering value from inception through to exit

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

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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

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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

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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

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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

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Insights

Proposal to extend the offshore private equity fund tax exemption to Hong Kong business

Currently, offshore private equity funds can only enjoy a tax exemption for investments into companies outside Hong Kong, which puts Hong Kong startups at a disadvantage and is also not helpful to attract private equity funds to set up office in Hong Kong. The Hong Kong Financial Services Development Council ("FSDC")'s paper looks at what the limitations are currently, and proposes changes to the rules such that Hong Kong can increase its competitiveness and flourish as Asia’s leading asset management centre. Florence Yip, Asia Pacific Financial Services Tax Leader, explained more.

Contact us

David Brown
Transaction Services Leader, Asia Pacific
Tel: +[852] 2289 2400
Email

Vincent Cheuk
Private Equity Group Southern China Leader
Tel: +[86] (755) 8261 8871
Email

Jianbin Gao
Private Equity Group Central China
Tel: +[86] (21) 2323 3362
Email

Amanda Zhang
Private Equity Group Northern China Leader
Tel: +[86] (10) 6533 2098
Email

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