Q&A: CohnReznick's Jeremy Swan on what to expect in 2016
January 07, 2016
CohnReznick principal Jeremy Swan is the firm’s Private Equity and Venture Capital Industry Practice Leader and M&A Consulting Services Leader. To contribute to our 2016 Crystal Ball Report, he took some time to chat with us about what to expect this year in private equity, covering topics such as due diligence, add-ons and deal multiples in sectors such as cloud and mobile tech.
Here is some of the interview:
What are some of the broader issues you’ve been seeing when helping conduct preemptive due diligence lately?
"We have seen sell side diligence continue to grow in popularity whether or not the company is private equity backed. In some cases we are seeing the sell-side investment bankers require a sell-side report prior to launching the sale process. In this kind of a market, it really makes sense. A well-prepared sell side diligence report will help identify issues before launching a process and prepare the management team for the eventual transaction process leading to a greater certainty of close. Due to the competitive nature of today’s market, there is greater emphasis on reducing the time horizon involved in closing the deal. As such, we are seeing more detailed letters of intent and a greater willingness from both buyers and sellers to discuss difficult issues earlier in the process."