Private equity

Customized approach.

Private equity firms are constantly looking to make better-informed investment decisions, improve portfolio company performance and increase realized value.

Over the last 15 years, our private equity strategy professionals have worked with clients to address these challenges utilizing our organization’s deep sector knowledge and efficient and flexible processes to complete more than 2,500 strategic due diligences around the globe. Our alignment with our broader EY organization affords us a winning combination for the entire range of private equity strategy and transaction needs.

Perspectives

What we do

Our services

Our suite of services helps private equity firms realize their full potential through better-informed decisions across the whole investment life cycle, from investment strategy through exit:

  • Market strategy: We work with your leadership team to help it optimize the firm’s overarching strategy and assess the attractiveness of a particular sector, theme or investment thesis.
  • Commercial diligence: Commercial due diligence is a core service. Using data-driven analysis, including our unique capabilities in primary and secondary research and econometric analysis, we are able to support our clients’ diligence process in evaluating the attractiveness of a target’s industry and assessing its competitive position and opportunities for growth. Our work is supplemented by EY’s diligence capabilities in financial, tax, human capital and operations.
  • Growth strategy: We assess opportunities for portfolio companies to expand their revenue. Examples of our capabilities include our data-driven approach to customer segmentation, geographic expansion, product line strategy and M&A strategy.
  • Value creation: We guide our clients through the post-acquisition planning process for their portfolio companies. As part of our organization’s broader strategic capabilities, we help support cost optimization, marketing effectiveness, pricing optimization, sales force effectiveness initiatives and post-merger integration.
  • Exit strategy: We can aid our clients in the exit phase of investment by articulating a portfolio company’s strategic position and future growth opportunities.

Our suite of services helps private equity firms realize their full potential.

Sector experience

Our clients range from large global funds to boutique firms. Throughout the years, our clients have attested to our incisive insights, practical orientation, accountability, proven methodologies and flexible approach.

Complemented by EY’s broad sector experience, we understand both niche and hard-to-define businesses, as well as traditional business models. At Parthenon-EY, we cover the following sectors:

  • Consumer products
  • Diversified industrial products
  • Education
  • Financial services
  • Health care
  • Information and media
  • Life sciences
  • Technology

From global funds to boutique firms, we have experience with a wide range of business models.

Why us?

Our global teams power strategic growth across the capital and transaction life cycle, providing hard-to-access information and actionable advice based on experience spanning 24 countries and multiple sectors. Our diverse client base ranges from global funds to boutique firms.

We rank among the top providers of commercial diligence services. Here’s why:

  • Market knowledge: Our continuous involvement in private equity transactions strengthens our understanding of market trends and value drivers.
  • Global reach: With an expanded network of EY member firms in 150 countries, our teams can quickly mobilize and assess information to deliver a local understanding of market opportunities.
  • Deep sector experience: Our industry experience and knowledge of key sector dynamics, trends and competitive landscapes result in deeper company-specific insights.
  • Flexible approach: Clients receive a customized approach using relevant sources and capabilities, focusing on the most critical drivers of value.
  • Complementary services: We offer clients integrated transaction advisory services, including financial diligence, operational, tax, valuation and working capital services. Learn more.

We rank among the top providers of commercial diligence services.

Broader capabilities

Our ability to access our broader EY organization makes for a winning combination for our clients. Examples of our integrated capabilities include:

  • Divestitures: We help you plan for and execute divestitures by reviewing portfolio assets, conducting presale diligence, preparing financial statements and preparing management for buyer communications. Learn more.
  • Operational transactions services: We advise you on operational due diligence; assess potential synergies; and assist with integration, restructuring and even carving out a business. Learn more.
  • Transaction diligence: We help you focus on the highest-impact deal drivers, including commercial and strategic priorities, financial and regulatory risk, operations, synergies and financial statement impact.
  • Transaction tax: We help you navigate the tax implications of your transaction and develop transaction alternatives or restructure your internal organization to improve tax efficiency. Learn more.
  • Working capital: We help you improve business processes to release cash trapped in receivables, inventories and payables to pay down debt, fund strategic initiatives or pay dividends.

In addition to the services above, we offer a breadth of capabilities across tax, assurance and advisory.

Tapping into the global EY organization makes for a winning combination for our clients.

Featured events

Our people

Case study: Due diligence for Private Equity firm

Situation

One of Parthenon’s private equity firm clients was interested in purchasing a manufacturer of articulating ladders, sold nationally through major hardware and home improvement stores.

Parthenon was tasked with answering the private equity client’s key questions in order to confirm or deny its investment thesis. Those questions included the following:

  • What are the key dynamics of the ladder market, including size, growth and segmentation?
  • What is the competitive landscape of the ladder market and how is it changing?
  • How do the channel and end-users view the product and why do they choose it over other options?
  • What additional growth opportunities exist for the target company?

Parthenon EY Action

During the six-week engagement, Parthenon used extensive primary and secondary research efforts to determine the product’s position within key retailers as well as its market penetration. Specifically, Parthenon executed interviews with several key constituencies including:

  • Management team members
  • Consumers (ladder owners, articulating ladder owners, and non-ladder owners)
  • Professionals (contractors, electricians, and painters)
  • Retailers buyers, Big Box, franchise hardware, and independent hardware competitors
  • Industry sources

Outcome

Based on the outcome of Parthenon’s work, the private equity client ultimately decided not to purchase the target company.