Fintech PR
Private Markets Due Diligence Places Outsized Demands on Dealmakers
Extensive study by SS&C Intralinks, Bayes Business School and Mergermarket examines how due diligence has changed in the last decade
WINDSOR, Conn., Aug. 15, 2024 /PRNewswire/ — SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced the publication of the SS&C Intralinks How Deal Terms Impact Due Diligence report. The M&A Research Centre at Bayes Business School (formerly Cass) analyzed more than 900 global M&A transactions announced between 2013 and 2023, drawing on data from SS&C Intralinks’ proprietary database. The study found a private target’s average due diligence period is nearly twice as long as a public acquisition’s. Moreover, private deals require nearly twice as much documentation and collaboration.
“Dealmakers continue to pursue multiple opportunities in private markets, but the environment for fundraising and deploying capital is challenging,” said Ken Bisconti, Co-Head of SS&C Intralinks. “Due diligence periods have gotten longer, and the process has gotten more complex, often requiring more documentation. This research confirms the growing importance of Virtual Data Rooms and other digital spaces for managing due diligence processes efficiently and effectively.”
Key findings from the report include:
- The average due diligence period, from VDR opening to the public announcement of a deal, takes 234 days for a private target versus 125 days for a public one. In the last decade, the pre-announcement due diligence period has stretched to 203 days from 124 days in 2014.
- On average, private targets upload 7,583 files to a VDR versus 4,896 documents for a public deal. For medium-sized deals – most prevalent in the market today – the number of files uploaded goes up to over 8,000.
- More people are involved in due diligence for private deals, with an average number of 271 VDR users collaborating versus 195 users for a public target.
The research also found medium-length due diligence tends to produce the best outcomes:
- Deals with medium-length due diligence periods of around 139 days are more likely to be completed. Such deals are likely to take 104 days from start to finish.
- Buyers are less likely to pay a premium on medium-length due diligence deals, with the price moving about 22% during such reviews. The average price appreciation following short and long due diligence periods is 30% and 33%, respectively.
- Deals with medium-length due diligence periods produce the best total shareholder returns of up to 4%, while short or lengthy due diligence periods often result in adverse outcomes.
Learn more about how deal terms impact due diligence here and read more about due diligence dynamics here.
SS&C Intralinks is a pioneer of the virtual data room, delivering software-enabled services across the entire deal lifecycle, including deal marketing, deal prep, due diligence, insights and post-merger integration. Intralinks technology enables and secures the flow of information by facilitating M&A, capital raising and investor reporting. SS&C Intralinks has executed more than USD 35 trillion worth of financial transactions on its platform.
About SS&C Technologies
SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world’s largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology.
Additional information about
SS&C (Nasdaq: SSNC) is available at www.ssctech.com.
Follow SS&C on X, LinkedIn and Facebook.
About M&A Research Centre
The M&A Research Centre at Bayes, which was founded in 2008, is the only research centre at any major business school focused on both the research and practice of mergers & acquisitions. Bayes Business School is part of City St George’s, University of London, and is based in London’s historic financial district. Contact: [email protected]
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View original content:https://www.prnewswire.co.uk/news-releases/private-markets-due-diligence-places-outsized-demands-on-dealmakers-302222896.html
AMSTERDAM, Oct. 23, 2024 /PRNewswire/ — The 2024 edition of the Atradius Payment Practices Barometer survey reveals that companies across Asia are concerned over the outlook for insolvencies in the coming months, adversely affecting prospects for B2B trade on credit.
A rising level of insolvency risk has emerged as a major concern looking ahead for half of companies surveyed by Atradius across Asia, with widespread worries it could negatively impact B2B trade on credit. Businesses are preparing for ripple effects and payment risks, adding to further anxiety about future profitability.
At the heart of the concern is the current uncertain economic landscape, largely driven by the slowdown in China’s growth. Notably, however, the survey reveals Chinese companies show least anxiety about future insolvency risk.
This is the key finding of the 2024 Atradius Payment Practices Barometer survey across Asia (China, Hong Kong, India, Indonesia, Japan, Singapore, Taiwan and Vietnam).
India, Indonesia, Japan and Singapore are the markets most preoccupied about future insolvency risk but worry right across Asia reflects the view outlined by Atradius economists in the latest Insolvency report which forecasts an increase in insolvencies across Asia in 2024.
Anxiety is compounded by an already challenging credit risk environment, with late payments affecting an average 46% of B2B credit sales and bad debts standing at 4% of B2B sales invoices issued by Asian companies. Concern around business profitability thus continues to weigh heavily.
“The global economy is set to grow by 2.7% this year, but weak demand and tight credit conditions are straining businesses,” says Andreas Tesch, Chief Market Officer of Atradius.
“We expect global insolvencies to increase by 23% in 2024, and China’s current economic slowdown is raising concern about rising insolvencies among many Asian companies. This could lead to deteriorating credit quality and B2B payment behaviour in several economies across Asia.”
The complete report highlighting the findings of the 2024 edition of the Atradius Payment Practices Barometer for Asia can be found in the Publications section of Atradius.com website.
About Atradius
Atradius is a global provider of credit insurance, bond and surety, collections and information services, with a strategic presence in over 50 countries. The products offered by Atradius protect companies around the world against the default risks associated with selling goods and services on credit. Atradius is a member of GCO, one of the leading companies in the Spanish insurance sector and one of the largest credit insurers in the world. You can find more information online at https://group.atradius.com
Connect with Atradius on Social Media
Website: https://group.atradius.com
LinkedIn: https://www.linkedin.com/company/atradius
YouTube https://www.youtube.com/user/atradiusgroup
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Fintech PR
Davidson Kempner completes landmark $1 billion+ debt restructuring of UAE-based plastic manufacturer
NEW YORK and MANAMA, Bahrain, Oct. 23, 2024 /PRNewswire/ — Davidson Kempner Capital Management LP (“Davidson Kempner“), a global investment management firm, has completed the restructuring of more than $1 billion of debt in the JBF Group (“JBF”), a business with industrial plants in the United Arab Emirates (“UAE”), Belgium and Bahrain, which manufactures and supplies high-quality polyester resins and films used in the packaging industry.
The transaction is believed to be the first significant debt-for-equity transaction of this kind executed under the UAE’s onshore bankruptcy law, setting a precedent for foreign investors in supporting businesses in the region with restructurings.
The transaction will see Davidson Kempner hold a significant majority equity stake in JBF Belgium and JBF Bahrain, with local and international investors holding the remainder.
The arrangement positions JBF Belgium and JBF Bahrain to prosper under the ownership of supportive and well-capitalized institutions who are committed to the long-term success of the business, allowing management to focus on innovation and growth, while preserving jobs at JBF’s three plants in the Gulf region and Europe.
For media enquiries:
Davidson Kempner Capital Management
[email protected]
Notes for Editors
About Davidson Kempner Capital Management
Davidson Kempner Capital Management LP is a global investment management firm with over 40 years of experience and a focus on fundamental investing with a multi-strategy approach. Davidson Kempner has more than $37 billion in assets under management and over 500 employees across seven offices: New York, Philadelphia, London, Dublin, Hong Kong, Shenzhen and Mumbai. Additional information is available at: www.davidsonkempner.com.
View original content:https://www.prnewswire.co.uk/news-releases/davidson-kempner-completes-landmark-1-billion-debt-restructuring-of-uae-based-plastic-manufacturer-302283777.html
Fintech PR
IDB Invest Launches Landmark $1 Billion Securitization in Latin America and the Caribbean
WASHINGTON, Oct. 23, 2024 /PRNewswire/ — IDB Invest announced a $1 billion securitization transaction, the first of its kind for private investors to buy multilateral development bank (MDB) assets from Latin America and the Caribbean. This innovative financial structure seeks to create a new MDB asset class for international investors. IDB Invest partnered with Santander and Clifford Chance as key advisors.
The securitization will be unveiled today during the launch event On the Road to Originate to Share, in Washington, D.C., featuring remarks by Ilan Goldfajn, IDB President; James Scriven, CEO of IDB Invest; Ana Botín, CEO of Santander; and Alexia Latortue, U.S. Treasury Assistant Secretary for International Trade and Development.
The transaction – Scaling4Impact – consists of securitizing $1 billion of IDB Invest’s portfolio, creating a tranched structure with an $870 million senior tranche; a $100 million mezzanine tranche, a portion being sold to international investor Newmarket Capital and the remainder insured by AXIS and AXA; and a $30 million junior tranche retained by IDB Invest.
The securitized portfolio includes assets from 20 countries and 10 sectors, such as corporates, infrastructure, energy and financial institutions. The transaction will free up capital, creating up to half a billion in additional lending capacity for new projects.
“With our new originate to share business model, our strong ties with governments and the deep synergies between our private and public sector work, we’re uniquely positioned to attract private capital,” said IDB President, Ilan Goldfajn. “Through this landmark transaction, we are connecting development assets with global investors to scale impact in Latin America and the Caribbean.”
“This initiative marks a major step in IDB Invest’s transition to our new originate-to-share business model, aimed at mobilizing capital and scaling impact through the private sector,” said James Scriven, IDB Invest CEO. “We are building a new MDB asset class to crowd-in investors seeking unique impactful investment opportunities in emerging markets.”
About IDB Invest
IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable projects to achieve financial results and maximize economic, social, and environmental development. With a $21 billion portfolio in development-related assets under management, 394 clients in 25 countries, IDB Invest provides financial solutions and advisory that meet its clients’ needs.
Media Contact:
Ana Escudero
[email protected]
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View original content:https://www.prnewswire.co.uk/news-releases/idb-invest-launches-landmark-1-billion-securitization-in-latin-america-and-the-caribbean-302284116.html
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