PE Global Capital Confidence Barometer … Equity Global Capital Confidence Barometer 3 >a_mj] -&
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2 Private Equity Global Capital Confidence Barometer
55%
Improving Stable Declining
17%35%
14%
37%
42%
31%
46%23%
55%
Apr 12 Oct 12 Apr 13
Apr 13 Oct 12 Apr 12
% positive view
56%
55%
44%
39%
36%
26%
32%
22%
20%
20%
14%
9%
49%
40%
31%
31%
25%
2%
Economic growth
Corporate earnings
Credit availability
Employment growth
Equity valuations/stockmarket outlook
Short-term market stability
66%
More than 5% 0%
3%–5% 15%
1%–3%
Zero growth 13%
Negative growth 6%
19%34%
12%
28%24%
36%
53%42% 52%
Apr 12 Oct 12 Apr 13
Improving Stable Declining
3Private Equity Global Capital Confidence Barometer
64%
64%
36%
Yes
No
44%
44%Slowing growth inemerging markets
40%Stagnation in the Eurozone
15%US debt ceiling challenges
4 Private Equity Global Capital Confidence Barometer
85%
49%18%
46%34%
33%24%
26%8%
18%6%
9%7%
1%3%
13 12
16%Zero
9%21%–50%
34%11%–20%
16%Over 50%
3%Don't know
22%<10%
5Private Equity Global Capital Confidence Barometer
10%40%
41%Less than 30%
23%9%
10%30%–35%
9%10%
12%36%–40%
14%14%
8%40%–45%
19%10%10%
46%–50%
22%18%
21%Over 50%
Apr 13 Oct 12 Apr 12
% saying yes
38%
43%
31%
25%29%
Apr 11 Oct 11 Apr 12 Oct 12 Apr 13
Increase Remain at current levels Decrease
13% 20%6%
44% 41%
30%
43% 39%64%
Apr 12 Oct 12 Apr 13
6 Private Equity Global Capital Confidence Barometer
42%
57%
% respondents positive
Likelihood of closingacquisitions
37%22%
44%
Quality of acquisitionopportunities
44%20%
38%
57%36%
48%
Number of acquisitionopportunities
Apr 13 Oct 12 Apr 12
India China SoutheastAsia
WesternEurope
United States and
Canada
Turkey Mexico Africa Russia/CIS
Brazil Central/EasternEurope
OtherLatin
America
6%
32%
62%
4%
34%
62%
20%
33%
47%
6%
35%
59%
9%
49%
42%
5%
49%
46%
15%
50%
35%
16%
46%
38%
27%
41%
32%
31%
42%
27%
23%
63%
14%
22%
47%
31%
Increase No change Decrease
April 2013 October 2012
7Private Equity Global Capital Confidence Barometer
22%
Lack of attractive targets 22%
Increased valuations 11%
Regulatory risk (includingtax exposure) 19%
Political risk 11%
Risk of not closing the deal 8%
8%
Local business governance practices 21%
8 Private Equity Global Capital Confidence Barometer
24%
26%Strategic value overestimated/purchase price multiple too high
24%Sales volume declines
24%Poor execution of investment thesis
23%Sales price deterioration
23%Underperforming management team
17%Poor operating cost assumptions
15%Unforeseen liabilities (tax, HR,pension, etc.)
12%Expectations from recent acquisitionshave all been met
10%Loss of customers
56%Revenue enhancement initiatives
47%Management alignment withnew plans/leadership
37%Reporting
34%Cost control/improvements
32%Cash generation initiatives
22%Internal controls improvements
15%IT improvements
3%Use of third-party consultants
3%Do not use 100-day/valuecreation plans
Create jobs/hire talent Keep current workforce sizeReduce workforce numbers
PE portfolio companies
9%
42%
49%
Corporations
10%
48%
42%
Private Equity Global Capital Confidence Barometer
•
•
•
•
78%
24%
40%12–24 months before exit
4%On hiring advisors
15%At the time of the acquisition
2%Less than 6 months before exit
1%Other
38%6–12 months before exit
43%53%
Secondary or sale to
33%32%Trade sale
24%15%IPO
Apr 13 Oct 12
25%$20 billion and above
26%$1 billion to lessthan $5 billion
19%$5 billion to less than$20 billion
30%$250 million to lessthan $1 billion
40%North America
4%Eastern Europe
21%
2%Latin America
2%Middle East and Africa
31%Western Europe
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