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Middle East Private Equity Insights

Maximising your
exit value
It’s been a busy eighteen months when it comes to exits.
Despite the decline in the oil price, financial sponsors
secured 57 exits over the period, including 12 IPOs.
A good proportion of these were either fully or partially
on overseas exchanges though. The figures below exclude
the numerous exit processes commenced over the same
period but which have yet to conclude.

57 65% Market sentiment

In the near term, it is evident that economic headwinds are

increasing. However, it was encouraging to hear that over
exits in the last 18 of these companies were 75% of people we spoke to expect to continue to focus on exits
months headquartered in UAE, KSA and Egypt
in 2016 to at least the same level or greater.

12 of these were IPOs 50% of respondents said

that market sentiment in
terms of exits had
worsened in comparison
Activity levels to 2014
…but 75% of respondents
expect exit activity to
continue at the same level
or increase

Our market soundings suggested that a high proportion

of the market (90% of the financial sponsors we spoke
Exit routes
with in region) were currently working on an exit. Egypt
Most people we spoke to noted a trade sale and/or a secondary
and the Kingdom of Saudi Arabia featured highly,
sale remained their most likely exit routes in the near term.
somewhat unsurprisingly given portfolio allocations.
The development of a functioning secondary market,
something that has mostly eluded the region to date, is more
92% 58% likely than ever and most sponsors would welcome it as a new
alternative exit route.
of respondents are of exit activity is
A smaller number of respondents are running "dual track"
currently working focused in Egypt and processes, giving them flexibility over either an IPO or trade
on an exit of a KSA sale.
portfolio company
Most likely exit route

8% 55% of respondents were

confident of a secondary

42% 25%
market developing in the
17% region

of respondents said of respondents said 42%

that they expect to
be dedicating most
of their time to exits
over the next 12
months
that they expect to be
spending most of 33%
their time on 67% of respondents found
portfolio increased interest of
international PE houses in
management over
Trade sale or secondary sale the region to be favourable
the next 12 months
Trade sale
"Dual track" IPO-in region and
trade sale
Secondary sale
Key takeaways
In light of the above and subsequent client discussions,
our key takeaways for Exits are:

1
Exits will still remain
relatively high on the
agenda in 2016

2
Portfolio management and
value creation remain a key
focus

3
It is never too soon to plan for
an exit

4 Your PwC Middle East Private

Expect to see the secondary Equity contacts
market develop into a viable
Russell Taylor Antoine AbouMansour
exit route in 2016 Middle East Transaction Services Transaction Services Partner, KSA and
Leader Lebanon
KSA:+966 (0) 569 311 700 KSA: +966 (56) 924 4900
UAE:+971 (0) 562 293 601 LB: +961 (70) 019 666
“Your exit strategy is as important on the russell.j.taylor@sa.pwc.com antoine.aboumansour@sa.pwc.com
way into an investment as it is on the way Richard Rollinshaw Maged Ezzeldeen
out. Making sure the numbers are clean Middle East Private Equity Leader Transaction Services Partner, Egypt
and can be readily produced for third +971 50 450 6718 +20 (0) 122 3421 386
richard.rollinshaw@ae.pwc.com maged.ezzeldeen@eg.pwc.com
party scrutiny, regular re-confirmation of
possible exit routes, likely buyer Nitin Khanna Maye Ayoub
Middle East Corporate Finance Leader Transaction Services Partner, Egypt
communities etc. – all of this is second
+971 506 539 843 +2 106 666 240
nature to sophisticated financial sponsors khanna.nitin@ae.pwc.com maye.ayoub@eg.pwc.com
who want to be able to move fast and
Erwan Colder Scott Hamilton
maximise value. All of the above will be Transaction Services Partner, UAE M&A Tax Partner, UAE
relevant in 2016 alongside robust value +971 56 547 5350 +971 56 216 9849
creation to protect against potential erwan.colder@ae.pwc.com scott.hamilton@ae.pwc.com

economic headwinds.” Norma Taki Ovais Chhotani

Transaction Services Partner, UAE Transaction Services Director, UAE
UAE:+971 566 820 602 +971 566 829 961
Richard Rollinshaw, Private Equity Leader
LB:+961 3 070 725 ovais.chhotani@ae.pwc.com
norma.taki@ae.pwc.com

Imad Matar Karl Mackenzie

Transaction Services Partner, KSA Delivering Deal Value Director, UAE
+966 55 7768 632 +971 56 991 0636
imad.matar@sa.pwc.com karl.mackenzie@ae.pwc.com

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