The PE industry internationally is active with their divestiture strategies based around mostly market conditions which are viewed as robust. Divestitures were slightly off in 2018 but opportunities will remain active but for buyers being able to buy well maybe challenging. PE’s are looking to move quickly once the divestiture decision is made and achieve their value expectation.
The market for selling is active but not without competitive challenges for the sellers. Buyers should not be afraid to negotiate and wait if necessary.
An interesting Stat is the IPO process is being considered as an exit option for the seller and consideration from 2% in 2017 to 16% in 2018 and looking forward firms in are at 27% for exits over the next 18 to 24 months according to EY. I happen to agree that smaller public transactions will be on the rise based on PE and Non-PE sellers and this creates capital access opportunities.
PE’s are looking to maximize value as any good seller should and buyers should be looking to buy well.