Private Equity growth to demand investor due diligence

At Private Equity World MENA 2006, conference speakers and delegates are set to address the issue of due diligence as a key success factor to transactions taking place in the region. The conference is set to take place at the Shangri-La hotel from the 17th - 20th September, 2006, with the first day being dedicated to a workshop on The Importance of Due Diligence.

'As the local market grows and regional competition increases companies will soon turn to mergers and acquisitions as a common means of controlling their market shares or strengthening their core businesses,' said Jonathan Greenhalgh, Conference Director for Private Equity MENA, Terrapinn. 'The key success factor involved in making a sound investment is due diligence in all its forms, from financial to technical, legal, strategic and commercial. It provides reassurance and confidence by analyzing all the assumptions about a particular deal. Moreover, part of due diligence is laying out an extensive post-deal plan that sees the company through the aftermath of the acquisition.'

The most effective way of practicing due diligence is using past experiences in particular trading lines to forecast the future, which is not found in abundance within the region since private equity has only recently exploded onto the scene. Therefore, it is detrimental to establish several local due diligence practices to be duly prepared for the rise in acquisitions by documenting the regional market dynamic. Another pressing reason for this service is vendor due diligence where when a company is being wholly or partially sold, it needs to show an in-depth report on its financial status to potential buyers.

'Due diligence is an investment in itself, in terms of time and money, so it can be tempting to cut corners and leave it out. But the result could be chaotic,' added Greenhalgh. 'The Private Equity MENA 2006 conference aims to help major stakeholders in this market develop the right partnerships and acquire insightful knowledge from the experts on both the regional and international scene.'

Private Equity MENA 2006 is organised by Terrapinn, which organizes over 15 conferences annually in Dubai only. The conference is sponsored by TVM Capital, Parsian Bank, Parsian International, Investec, Freshfields Bruckhaus Deringer, M'Sharie and Zawya.