13 December 2018

Overvalued targets ‘among top threats’ for PE deals, E&Y says

Overvalued targets and regulatory hurdles pose the greatest challenges to Asia-Pacific private equity deals this year, according to more than 60 percent of respondents to a survey by accountants Ernst & Young.

Only 40 percent of the respondents saw cash-rich corporates as the biggest threat to private equity investments in 2014, down from nearly 80 percent in 2013.

The study canvassed 50 private equity investors, 30 institutional investors and 20 private equity investment bankers based in the Asia-Pacific region in July and August last year.

The survey reflected less optimism about investment activity in 2014, with 76 percent of respondents saying they have high expectations that PE deals will increase in 2014, compared with 86 percent last year.

The consumer sector is expected to get the most attention this year, followed by energy, mining and utilities, and telecommunications, media and technology, the survey showed.

– Contact HKEJ at [email protected]



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