Scott Hendon has more than 35 years of experience providing tax consulting services to a wide range of energy, high tech, manufacturing, distribution, and retail clients. He is the national leader of BDO’s Private Equity industry group, global leader of BDO International’s Private Equity industry group, and the international liaison partner for BDO in the U.S.
Private equity firms are looking to invest in a company and increase their value over time. Private equity firms are looking to build earnings before interest, taxes, depreciation and amortization (EBITDA) because generally valuations are a multiple of EBITDA for the eventual sale.
To compensate for the slowdown in deal activity at the beginning of the pandemic, fund managers are racing to put committed capital to work and get deals done. Everything from private company sales to corporate divestitures is driving more deal flow.
Expecting economic contraction has sent private equity and venture capital to the markets in droves as they look for liquidity to strengthen their stockpiles during a down economy.