Global Investment Opportunities and Risks

by Ken Urish 30. October 2012 08:29
Global Opportunities, the 2012 BDO Ambition Survey, is very timely reading. It offers valuable perspective on global investment opportunities and risks overseas, from the perspective of CFOs of $50M - $2B companies. This year’s findings reflect the general climate of economic and political uncertainty that prevails today, as the focus is on threats presented by currency fluctuations and geopolitical risk. Executives polled indicate that current ‘safe haven’ markets include not only the US, UK and Germany, but also the BRIC countries of Brazil, Russia, India and China. Businesses in North America, Europe, the Middle East, Africa, Asia Pacific and Latin America were interviewed. Respondent companies were sampled from consumer, manufacturing, natural resources, real estate/construction, professional services and technology sectors. The report looks at where CFOs are focusing their international investment, what their mood is, and asks for their practical advice on the primary success factors when expanding overseas. This survey is a good reminder of why Urish Popeck has aligned with BDO for more than 18 years. As one of the Top Six global accounting organizations, BDO offers superb global resources that provide benefits to our clients that other regional firms cannot match. BDO brings local knowledge and expertise from 1,100+ offices in 138 countries worldwide. Local knowledge is critical because CFOs the world over are finding it more difficult to conduct business abroad, given the poor economy, increased regulation and greater competition. Almost half the CFOs surveyed said that good advice from reliable people on the ground is a key to successful international expansion. As Martin Van Roekel, CEO of BDO International states, “we know that our clients expect more and are seeking a tailored approach which reflects the culture they work in, and the kind of business they are.” Check out the 2012 BDO Ambition survey. We believe you will find it interesting and the experience of your peers useful.
Categories: Advisory

PE Deal Forecast for 2012: Gradual Clearing

by Ken Urish 7. February 2012 10:27
The research firm PitchBook recently completed a national survey to develop a 2012 forecast for the Private Equity Industry. More than 100 senior executives at PE firms ranging to $72 billion in assets responded. The main takeaway according to the survey? Don't expect big increases in deal flow from the modest 2011 levels. A majority of private equity fund managers (70 percent) - regardless of fund size - expect to close only two or three deals during the next 12 months. This is a an increase from 2011, when 47 % of fund managers reported closing no new deals, and another 19% closed only one. While portfolios are in the black, individual companies continue to struggle - 22 percent of respondents indicated that more than 20 percent of their portfolio companies are currently performing below forecasts. But the trends are positive. The portfolio companies are rebounding, as funds continue to mitigate loses and bankruptcies decline.  While 11% of respondents reported declaring bankruptcy for one or more portfolio companies during the trailing 12 months, only three percent expect to do so in the coming year. And significantly, most respondents remain committed to their primary investment strategies. Only 7% have asked to change investment strategies and 11% are expected to do so within the next 12 months. The PitchBook survey was performed for BDO's Private Equity practice. For more details, please see this press release.  
Categories: Advisory