Interview with Ana Brandao: Navigating the Dynamics of Non-public Fairness in France
Ana Brandao, a distinguished French Lawyer specializing in mergers and acquisitions and personal fairness transactions, supplies invaluable insights into the evolving panorama of personal fairness in France. As a key member of BDO Avocats, the regulation agency of BDO in France, Ana sheds mild on the agency’s multi-disciplinary strategy and its function in facilitating complicated transactions in an more and more dynamic market.
Non-public fairness is a dynamic trade. From the complete life cycle of a fund, from formation and fundraising by development fairness transactions, leveraged buyouts, going-private transactions, and recapitalizations, to inclinations and exits.
Which of those areas in France have you ever seen most change and why within the earlier 2 years?
Following a 31% lower in funds raised by non-public fairness actors in 2020 on account of the pandemic, 2021 witnessed unprecedented ranges of fundraising.
The sector of development fairness, additionally known as capital growth, has seen its fundraising quantity double in two years. These modifications are pushed by the resilience of the non-public fairness sector and its capability to regulate to financial instabilities. The transfer in the direction of smaller and mid-cap autos additionally signifies a shift in market developments.
In 2023, regardless of some indicators of a slowdown within the first half of the 12 months, the non-public fairness trade has maintained its dynamism and is starting to stabilize once more. In an unsure macroeconomic atmosphere, non-public fairness stays, nonetheless, a key participant in financing enterprise development.
Fundraising cycles proceed to be prolonged. What are the primary causes for this and the way does BDO France help its purchasers on this course of?
Fundraising cycles in non-public fairness are typically prolonged because of a number of causes. Non-public fairness investments are sometimes medium to long-term. This long-term dedication requires in-depth due diligence and negotiation processes, which may lengthen the fundraising cycle.
Moreover, elements like unstable financial situations, unprecedented ranges of inflation, and quickly growing rates of interest have the potential to decelerate the method of personal fairness transactions and lengthen the period of funding intervals. As buyers turn out to be extra refined, standard strategies of elevating funds can also not be ample.
BDO France has a workforce of specialists in each self-discipline who help their purchasers in each course of of personal fairness transactions by offering authorized, tax and monetary recommendation, due diligence, negotiation assist, and doc preparation. Our groups mix intensive experience to supply tailored options. The synergy between our expertise and people of BDO monetary specialists creates a exceptional pressure to handle the complicated challenges our purchasers face. We additionally assist our purchasers determine potential buyers, put together presentation packages and construction transactions. Our workforce is devoted to supporting a variety of companies, from SMEs to massive companies, together with mid-sized enterprises, startups, and quickly rising corporations.
With latest advances, milestones, and breakthroughs achieved in synthetic intelligence (AI), expertise and the digital sector, how has this impacted non-public fairness investments, notably in AI, and what conclusions will be drawn from non-public fairness and AI?
AI’s emergence has revolutionized commonplace funding strategies and redefined how non-public fairness specialists navigate the monetary subject. Leveraging AI algorithms, PE companies achieve swift entry to complete insights, streamlining funding choice and enhancing data-driven decision-making accuracy.
At BDO, we’re more and more utilizing AI in our actions. AI is a useful software when it comes to saving time and, due to this fact, bettering our productiveness and responsiveness to our purchasers. We’re going to be increasing our use of AI within the close to future to make it our ally within the service of our prospects whereas holding, at coronary heart, compliance with information safety and cybersecurity requirements, and naturally, the authorized safety we provide them.
The leveraged buyout (LBO) market in France has proven resilience in 2023, regardless of going through a number of challenges. What are your predictions for the long run and why?
After a number of dynamic years, marked by waves of transactions, the 12 months 2023 is much less spectacular for LBOs. The geopolitical context (battle in Ukraine) and the macroeconomic atmosphere have had an affect on transactions. The financing market has slowed sharply because of excessive rates of interest, which elevated the price of debt. The place it used to price between 4 and 5%, it now prices between 8 and 10%. It’s primarily the large-scale transactions which have disappeared from the panorama. For SMEs and ETIs, then again, the image is much less bleak.
Nonetheless, the outlook stays vibrant. Regardless of the latest problems within the LBO market, funding funds have massive sums of cash to speculate (the well-known “dry powder”) and it’s not of their curiosity to delay placing them to work. Moreover, the necessity to move on companies is changing into a actuality, one third of founders shall be pressured handy over their enterprise because of their retirement throughout the subsequent 5 years.
What are the highest 5-10 points in French mergers and acquisitions transactions each the goal firm and the buying firm ought to take into account when considering a transaction?
(1) It goes with out saying that they need to be accompanied by specialist advisors on this subject, to assist the operation run easily.
(2) You will need to determine delicate points at an early stage, to keep away from the chance that a problem not recognized on the negotiation stage will essentially result in a contentious final result relating to mild, after the change of possession.
(3) Assure the confidentiality of negotiations and enterprise secrecy.
(4) Anticipate, as it might have a big affect on the calendar, any prior approval process earlier than a public authority, because of notably overseas funding in delicate actions, or anti-trust guidelines.
(5) The sellers should be sure that the pursuits of their firm and staff are protected throughout this sort of operation. (6) So as to keep away from the failure of the transaction post-closing, an in depth anticipated deliberate integration have to be carried out to keep away from tensions with staff and prospects.
ABOUT:
I’m a French Lawyer specializing in mergers and acquisitions and personal fairness transactions. I joined BDO Avocats, the Legislation Agency of BDO in France, after beforehand working for worldwide Legislation Corporations.
BDO Avocats is a multi-disciplinary regulation agency. It’s a member of BDO, the world’s fifth largest community of audit, consulting, accounting, and social experience companies, current in 162 nations. Our French Transaction Companies workforce labored in 2023 on greater than 100 offers, for company and personal fairness purchasers.
I help my purchasers of their exterior development operations, in addition to of their restructuring tasks, each in France and overseas. I act as a privileged contact for my purchasers within the implementation of tasks with a big worldwide dimension as I’m fluent in English, French, Spanish and Portuguese. I counsel corporations within the negotiation and authorized structuring of their monetary wants, notably through fundraisings and leveraged buyouts, in addition to within the identification and administration of company governance dangers. Lastly, I’m additionally concerned in resolving shareholder disputes.
Ana Brandao
Lawyer at Legislation, BDO AVOCATS
43 47, Avenue de la Grande Armée 75116, Paris
Electronic mail: ana.brandao@avocats bdo.fr
Tel: +33 1 79 97 12 43
Printed by: www.lawyer-monthly.com