Following the collapse of the sub-prime market and its repercussions in the global economy, private equity houses are struggling to capitalise on the large number of good value acquisitions in the market due to problems raising debt through traditional methods. 

Following the collapse of the sub-prime market and its repercussions in the global economy, private equity houses are struggling to capitalise on the large number of good value acquisitions in the market due to problems raising debt through traditional methods.

Banks are less likely to syndicate and total deal volumes have begun to fall.

In the current economic climate, asset-based lending provides private equity groups with an alternative way to finance acquisitions and provide working capital using the asset base.

The team at Edward Symmons provides valuations across all asset classes for private equity houses and corporate entities looking to make an acquisition or seek alternative flexible funding with increasing regularity.

A high profile example of a buy-out that used the target’s asset base is Nordwind Capital’s acquisition of the German auto component manufacturers ISE Innomotive and ISE Industries.

The deal was supported with a comprehensive financing facility provided by Commerzbank. The ISE group are a tier-one supplier into the automotive sector based in Bergneustadt, Germany, operating from a 200,000 sq m site.

Edward Symmons was engaged by Nordwind to provide a detailed and comprehensive valuation of the property, plant and machinery along with the inventory, and turned the valuation around in under three weeks.

The UK is increasingly becoming the gateway to Europe and the most important centre outside of the US for the private equity market.

Deals are and will continue to be completed and we are well placed to work closely with private equity investors on these transactions, providing comprehensive asset valuations supporting the investment process.

Gary Quaife is partner and head of collateral review & valuation at Edward Symmons.