Guide on private equity in Belgium

Notwithstanding the still uncertain economic climate, there is a trend towards a revival of the M&A market, in which private equity houses are playing an increasingly important role.

Private equity houses are divided as to whether or not financing will get any easier but plenty of funds seem to be available. Furthermore, those private equity houses that have the best access to the debt market and to institutional investors get the most favourable financing deals, and this is generally reflected in the pricing, making them the winning team.

In the large transactions, the trend is for the more sophisticated private equity houses to look into the (fiscal) structuring aspects at an early stage prior to the classic due diligence, allowing them to make higher pre-tax bids, and thus obtain a competitive advantage.

This guide will provide the reader with an insight into – to name just a few of the overall topic categories – the deal process and deal structuring, optimisation of financial techniques, modelling of the cash flow stream, management participations, fund structuring, exits, and investment vehicles. The glossary included in this guide will definitely be welcomed by many a reader.

The Private Equity Guide has been written by the M&A Tax experts of PwC in Belgium. The authors analyse each issue so as to focus on the aspects that are of concern not only to private equity houses and their investors, but also management, banks, employers and advisers, each of whom will find this booklet essential background reading.