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case studies | Pre-exit support

Case studies

Exiting an NHS-exposed asset in a difficult market environment

Overview

A UK midmarket private equity client wanted to undertake preparatory sell-side due diligence to facilitate the sale of a portfolio company with significant exposure to the UK National Health Service (NHS). 

Work

Alongside the client, GC helped to identify the key issues that were likely to cause concern for prospective bidders. We produced a comprehensive report on the likely trajectory of demand, funding and regulation, as well as holding briefing calls with prospective bidders. 

Impact

Our work helped the client to exit the business at a strong multiple in a difficult market environment in which many other deal processes had either stalled or been delayed. 

Vendor due diligence for the sale of a global chemicals company by a global PE major

Overview 

Our client’s asset was affected by EU regulations that restricted the sale of certain chemicals. These regulations were under regular review. The asset had also benefited from US trade policy that limited Chinese competition. Our client sought to understand and reassure potential buyers about the risk of harmful change to the EU regulations and US trade policy.

Work 

Our team of in-house climate and trade experts have direct government experience in the relevant markets, including technical expertise to interpret chemicals regulation. Across our Washington DC, Brussels and London offices, we cross-referenced (i) the chemical mix and (ii) the WTO code of each of the company’s products against chemical regulations and tariff restrictions to identify the risks. We spoke to key political and regulatory policymakers in government, regulators and industry. This enabled us to reach a settled and authoritative view about the direction of change in the medium term.

Impact 

Our client used our detailed report to reassure buyers that the regulatory and trade outlook were beneficial to the company's future growth. We joined buy-side calls to explain this complex technical subject in straightforward language and we set out our evidence. The client was able to command a premium price that captured the true value of the asset.

Exiting a business services firm with exposure to taxation policy

Overview

A UK midmarket private equity client wanted to undertake preparatory sell-side due diligence to facilitate the sale of a portfolio company in the business services sector with significant exposure to the UK taxation system. 

Work

Alongside the client, GC helped to identify the key issues that were likely to cause concern for prospective bidders. We produced a comprehensive analysis, including the historical trajectory of relevant taxation policy and the key drivers of political decision-making. 

Impact

Our work helped the client to exit the business at a strong multiple in a difficult market environment in which many other deal processes had either stalled or been delayed.