As a private equity firm looking to acquire an organization, part of the process would be to scrutinize its human resources infrastructure – discover its vulnerabilities and liabilities.
Concepts like builder baskets and incurrence tests were previously seen only in large deals, but in today’s frothy market, they’re being introduced in small and middle-market transactions too.
Striking the right balance between speed and thoroughness in a deal is crucial and especially challenging in transactions involving a family-owned business, new industry or carve-out.
Avoid compliance issues and liability by keeping up with government statutes and workforce regulations.
Co-investment is becoming a competitive advantage for private equity firms.