Page 2 - Private Equity Exits via Initial Public Offerings 2016

Private equity exits via Initial

Public Offerings (IPOs)

Although 2016 will not be remembered as a vintage year for IPOs in the London market, the trend for private equity
exits via the public markets continued. In this report we analyse the key deals of the year across both the London
Main Market and AIM.

For a private equity investor, an IPO can have various advantages including the ability to achieve liquidity without a full exit, giving

the opportunity to participate in future equity upside whilst also retaining some element of control (depending upon the size of the
retained stake). However, central to any successful IPO is a high quality management team whose key members are prepared to
embrace the glare and rigour of the public markets; this isn’t for everyone and obviously an IPO is impossible to achieve without
a willing and appropriate team in place.

The market appetite for a twin-track process is still apparent, coupling an auction process for potential trade and private equity
buyers with the preparations for an IPO. The strategy and tactics in such a process are key in order to achieve competition and
genuine price tension. The investment in time and cost should not be underestimated - such processes are often a huge drag
on senior management time and resource and the business can start to suffer if the process becomes protracted.

Our nationally recognised corporate finance specialists work regularly with private equity investors, venture capitalists, portfolio
companies, management teams and investment banks on equity capital markets transactions, including IPOs on London’s
Main Market and AIM. Our focus is on maximising your returns whilst minimising your risk by helping you to navigate through a
complex transaction.

The value our clients see in our approach is reflected in the fact that DWF’s corporate team has had a record-breaking year
completing 99 reported deals worth over £6bn during 2016.

Private equity exits via Initial Public Offerings (IPOs)