In recent years, the private equity market has experienced dynamic growth in the UK. However, the credit crunch that began in the summer of 2007, and the resulting recession being experienced at the time of writing this book, have created far more challenging market conditions for the industry. The purpose of this book, therefore, is to capture the practice prevailing in the market not only before the market turned, but also in the more challenging environment that has emerged since. To a degree, that latter practice is still developing of course – but, as this book highlights throughout, an understanding of how private equity deals were structured and transacted during the recent boom period will help the reader appreciate how such market practice is adapting, and will continue to adapt, to the more uncertain conditions currently being experienced. It is also our view that private equity will continue to make a significant contribution to UK industry notwithstanding these uncertain market conditions; in all uncertainty lies opportunity.

We have designed this book to guide the reader through the principal issues likely to be faced in transactions in the UK private equity market – from the initial business planning, due diligence and negotiation of the investment, through the life of that investment for the management team and the investors, concluding with a successful (or perhaps less successful) exit. The book also considers in some detail the practical issues that can arise in specialist areas – particularly banking, tax, pensions, competition law and employment law – all of which combine to define the structuring and terms of any transaction.