•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

By:Holger Ebersberger, Dr. Matthias Weissinger | McDermott Will & Schulte

Execution has become the defining capability

As we are approaching the third quarter of this year, one theme stands out. Across private equity, transactions are progressing, but they are taking different paths to the finish line. Timelines are longer, due diligence is more extensive, structures are more complex, and risks are harder to price. In many cases, deals only close because the parties involved are willing to rethink the conventional approach.

The question is no longer whether capital is available or whether assets are attractive. The real question is whether deals can be executed - and how they can be successfully brought to completion in today's challenging market environment.

The investors that succeed are not necessarily those with the most capital or the strongest pipeline. They are the ones that can navigate complexity without losing momentum.

There is no longer a "standard" deal

Expectations of a traditional buyout model with clean pricing and straightforward leverage are increasingly out of step with market reality.

Today's transactions are bespoke by necessity. Valuation gaps persist, sellers want certainty, and buyers want protection. Bridging that tension requires flexibility.

As a result, the market is seeing a clear shift towards:

• Earnouts and deferred consideration to align expectations on future performance;

  ......................

  To view our full article Click here