Litigation Funding
Family Businesses
Family businesses which have been around for several years, sometimes generations, are like rough diamonds. Small or medium size enterprises which are well managed for profit who weathered several market cycles but in most cases, lag the corporate governance an professional management of larger equivalents enabling them for the next stage of success.
This presents an opportunity to improve operational efficiency and business development especially under a buy and build strategy. Private equity buy and build generates an average annual return of 31.6%, versus 23.1% for standalone deals.
Platforms that take a company deeper into an industry generate average annual returns of 43.5%, compared with 16.4% for deals that diversify the business and are more immune to macroeconomic shocks.
Buy and build share of private equity investment climbed up to over 52% by 2020 from 20% in 2000. Buy and build is widely seen as a way to compensate for today's historically high acquisition prices in traditional buyouts.
Buy and build deals that involve cross-border add-on acquisitions do even better than deals only involving domestic acquisitions.
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