Private Equity
Bain & Company is the leading consulting partner to the private equity industry and its key stakeholders. We advise investors across the entire investment life cycle.
Global Private Equity Report 2011
Private equity is ready for a comeback, fueled by more stable debt markets and nearly a trillion dollars in uninvested capital.India Private Equity Report 2011
This decade could be even better than the last for private equity in India if regulatory and other barriers fall.A new blueprint for private equity
Leverage, multiples and GDP growth are no longer enough to propel returns.
What we do
In the past decade, Bain & Company has advised on half of all buyout transactions valued at more than $500 million globally. Our work with buyout funds represents 75 percent of global equity capital. Our practice is more than three times larger than that of the next-largest consulting firm serving private equity funds.
And Bain’s work with private equity does not stop with buyout funds. We work across fund types, including debt, infrastructure, real estate and hedge funds. We also work for many of the most prominent limited partners to private equity firms, including sovereign wealth funds, pension funds, financial institutions, endowments and family investment offices.
Private equity consulting at Bain represents about 25 percent of the firm’s global business. We maintain a global network of more than 400 experienced professionals serving private equity clients. Bain has deep experience working in all regions of the world across all major sectors–from consumer products and financial services to technology and industrial goods. We support our clients across a broad range of objectives:
And Bain’s work with private equity does not stop with buyout funds. We work across fund types, including debt, infrastructure, real estate and hedge funds. We also work for many of the most prominent limited partners to private equity firms, including sovereign wealth funds, pension funds, financial institutions, endowments and family investment offices.
Private equity consulting at Bain represents about 25 percent of the firm’s global business. We maintain a global network of more than 400 experienced professionals serving private equity clients. Bain has deep experience working in all regions of the world across all major sectors–from consumer products and financial services to technology and industrial goods. We support our clients across a broad range of objectives:
- Deal generation
- Due diligence
- Portfolio value creation
- Distressed turnarounds
- Exit planning
- Firm strategy and operations, including sector strategy
Our approach
Deal generation: We work alongside investors to develop the right investment thesis and enhance deal flow by profiling industries, screening targets and devising a plan to approach targets.
Due diligence: We help investors make better deal decisions by performing due diligence, assessing performance improvement opportunities and providing a post-acquisition agenda.
Portfolio value creation: Immediately post-acquisition, we support the drive for rapid returns by developing a strategic blueprint, leading workshops that align management with strategic priorities and directing focused initiatives. During the ownership phase, we support leveraged efforts in revenue enhancement and cost reduction and refresh the value-creation plan.
Exit planning: We help ensure that investors consummate deals with a maximum return by preparing for exits, identifying the optimal exit strategy, preparing the selling documents and pre-qualifying buyers.
Distressed turnarounds: Private equity firms and financial investors benefit from Bain’s Corporate Renewal group, which provides expertise for boards and equity sponsors of underperforming, capital constrained companies. We focus on turnarounds that preserve shareholder equity. Our experts are uniquely skilled in financial restructuring and strategic, operational and organizational transformations.
Firm strategy and operations: Working jointly with private equity firms, we help them to develop their own strategy for continued excellence. Topics include asset class and geographic diversification, sector strategy, fund-raising, organizational design and decision making, winning the war for talent and maximizing investment capabilities.
Due diligence: We help investors make better deal decisions by performing due diligence, assessing performance improvement opportunities and providing a post-acquisition agenda.
Portfolio value creation: Immediately post-acquisition, we support the drive for rapid returns by developing a strategic blueprint, leading workshops that align management with strategic priorities and directing focused initiatives. During the ownership phase, we support leveraged efforts in revenue enhancement and cost reduction and refresh the value-creation plan.
Exit planning: We help ensure that investors consummate deals with a maximum return by preparing for exits, identifying the optimal exit strategy, preparing the selling documents and pre-qualifying buyers.
Distressed turnarounds: Private equity firms and financial investors benefit from Bain’s Corporate Renewal group, which provides expertise for boards and equity sponsors of underperforming, capital constrained companies. We focus on turnarounds that preserve shareholder equity. Our experts are uniquely skilled in financial restructuring and strategic, operational and organizational transformations.
Firm strategy and operations: Working jointly with private equity firms, we help them to develop their own strategy for continued excellence. Topics include asset class and geographic diversification, sector strategy, fund-raising, organizational design and decision making, winning the war for talent and maximizing investment capabilities.
Client results
We share our clients’ ambitions. We work to understand their reality and deliver true results—focusing on strategic decisions and practical actions. And we align our incentives with our clients’ objectives, so they know we’re in it together. Read the results stories below to learn how we’ve helped clients realize, and often exceed, their objectives.
A cable TV acquisition nets 70% IRR
Our client, an LBO firm, wanted to buy a cable TV company, but only if it could then expand into long distance telephone service. We assessed the target and the market, and recommended the acquisition, which our client resold two years later for a substantial profit.Quick due diligence results in well-timed purchase
Bain performed due diligence to quickly assess a potential acquisition target for our LBO client. The client was able to make an early bid, and the investment exceeded EBITDA expectations.Finding profit potential in a struggling portfolio company
Our full-potential approach helped our client boost profit potential by divesting assets and reducing purchasing costs.Restoring polish to a faded home furnishings company
Industry-wide slow growth threatened our client's home furnishings portfolio company. Bain recommended product and pricing initiatives that resulted in increased EBITDA of 50% within three years.
Insights
We develop insights that work for our clients. Our approach and recommendations are highly customized and lead to practical actions. Read some of our experts' perspectives on important issues—for our clients and their industries.
Buyouts
Road to returns in consumer goods
By Charles Tillen, Martin Toner and David Harding
Nearly every major PR firm has been active in the consumer goods sector, and with good reason: reliable cash flows, familiar brands and constant opportunities to make the everyday things we buy a little more profitable.Harvard Business Review Press
Lessons from private equity any company can use
By Orit Gadiesh and Hugh MacArthur
Five basic disciplines that give private equity firms an edge, but that any company can learn.Buyouts
Sharpening your sector focus
By Hugh MacArthur, Tom Shannon, and Catherine Lemire
Organizing around industry sectors can deliver powerful benefits.Buyouts
Value creation more important than ever
By Alan Hirzel, Charles Tillen and Catherine Lemire
PE firms that actively intervene in their portfolio companies deliver better returns.Bain industry brief
Private equity in Southeast Asia
By Bain's Global Private Equity practice
Though overshadowed by success stories in China and India, private equity also has been speeding the growth of companies across Southeast Asia. Here's how the industry will evolve.The Financial Times
Healthy wariness could benefit private equity
By Hugh MacArthur and Graham Elton
Favorable PE conditions are rooted in a healthy wariness born in the excesses of the recent past.
Our team
Bain & Company maintains a broad network of experienced professionals serving private equity clients and other types of financial investors on four continents. We work with private equity clients as an integrated team, from deal partners to portfolio company executives.
Hugh MacArthur
Head of Bain's Global Private Equity practice
Boston
View profile
Bill Halloran
Head of Bain's Americas Private Equity practice
San Francisco
Graham Elton
Head of Bain's EMEA Private Equity practice
London
View profile
Suvir Varma
Head of Bain's Asia Pacific Private Equity practice
Singapore
Results Delivery
From day one, we focus on predicting, measuring and managing risk associated with changeBain Insights
Bain's latest view on critical private equity issuesI would recommend Bain because of their ability to leverage extensive industry knowledge and perspectives, but, more importantly, to tailor this to a specific business situation and in an inclusive way with a management team.
- PE client
Your blog posts are concise and to the point, making them easy to read and understand. We at pOrbis appreciate how you break down complex topics into digestible pieces.
ReplyDelete