Private Equity Newsletter
Keeping you informed
PwC Germany I January 2025
How PwC Managed Services can support PE
In brief
Managed Services offer scalable solutions that are especially beneficial for portfolio companies during carve-out deals and restructuring. By leveraging the latest technology, these services automate financial processes to enhance efficiency and precision. This flexibility is crucial in dynamic business environments, allowing companies to adapt quickly to changing circumstances. Furthermore, Managed Services ensure compliance with laws and regulations across multiple jurisdictions, minimizing the risk of non-compliance.
Environment
PE Challenges
Current and foreseeable in the near future
Competition Intense competition for attractive investment opportunities leads to higher company valuations, limiting potential returns.
Digitalization Advancing digital transformation within their own operations and portfolio companies presents an ongoing challenge.
Economic Uncertainty Geopolitical tensions, particularly in Europe, and uncertainties regarding post-COVID-19 economic developments affect investment strategies and risk assessments.
Interest Rate Environment Rising interest rates complicate debt financing for acquisitions and can impact private equity returns.
Sustainability and ESG Criteria Investors increasingly prioritize sustainable investments and the integration of Environmental, Social, and Governance (ESG) criteria. Private equity firms must incorporate these aspects into their investment decisions.
How we help to address them
Our Managed Services model has been designed to achieve an optimum balance of cost and scale that is competitive in the market.
It provides flexibility and agility to enable us to effectively respond to the market needs and deliver quality services to our clients.
We leverage automation and digitalization to optimize processes, ensuring high-quality service delivery at competitive costs.
We assist private equity firms in navigating market challenges by focusing on important topics as well as using data analytics to identify undervalued opportunities.
Our approach includes:
- integrating cutting-edge technology
- fostering digital skills
- developing adaptive investment strategies
to manage economic uncertainty and rising interest rates. Additionally, we guide firms in incorporating ESG criteria to enhance value creation and to fulfill legal requirements.
Through these strategic initiatives, we enable firms to achieve sustainable growth and operational excellence.
Human Resources
PE Challenges
Current and foreseeable in the near future
Skilled labour shortage The lack of skilled professionals in the financial sector can hinder firms' ability to operate effectively and invest successfully.
Managing Payroll Across Multiple Jurisdictions For firms with portfolio companies labor laws can be challenging:
- different locations
- managing payroll across multiple jurisdictions with varying tax rates
- social security requirements
How we help to address them
The HR Managed Services teams at PwC are well-versed in running a busy HR department. We provide support in all processes of personnel development and talent management. Our HR experts implement best practices and ensure that all regulatory requirements are met.
We offer end-to-end payroll processing and reporting services for the German, CEE and global markets. Our MS solutions, and AI-enabled systems from the PwC Network, enhance efficiency and minimize errors, while our payroll consulting services ensure seamless integration and compliance across regions.
Finance
PE Challenges
Current and foreseeable in the near future
Carve Out Finance IT and Operations Companies regularly analyze potential acquisition targets that may, due to circumstances like carve-out situations, only partially or not at all have their own administrative structure capable of independently providing support functions such as finance and IT.
Data Management and Reporting These elements are crucial for accurate analysis and decision-making. Additionally, they must handle complex compliance and security requirements, meet real-time processing demands, adapt to evolving technology, and manage costs effectively.
How we help to address them
We offer comprehensive out of a box solutions for private equity firms, if needed, fully take over all commercial, compliance, and IT-related tasks at short notice, regardless of the industry of the target company.
Managed Services can streamline data management processes, improving the accuracy and timeliness of financial reporting. They can implement and manage technology solutions that consolidate data from various sources, ensuring compliance with reporting standards and enhancing decision-making.
Why us? Flexible scoping fulfils the clients needs
We are a team of technology-skilled, experienced specialists, having all resources you need, flexibility that you expect and know how to succeed. Our services can be delivered comprehensively or selectively, depending on the client's needs.
- 364 000 PwC experts in 688 cities and 151 countries
- 178 000+ Clients across our global network
- 58 000 talented, diverse Managed Services professionals in 52 locations across our delivery network
- 30+ technology alliances ecosystem to curate the right blend of technology for service provision to your PortCos
Managed Capacity Refers to short- to medium-term solutions addressing urgent capacity or capability gaps like a “firefighting” role e.g., in accounting. We provide resources, clients provide oversight and remain responsible for providing the process, methodology and technology. Managed Programme Providing a solution for a specific problem. Typically, part of delivering a transformation program or where there is a backlog of transactions/queries from the business.
Managed Services A fully-run Managed Services where clients can outsource their hire-to-retire, payroll or AMS activities to us, typically over a number of years.
Your PwC Germany Managed Services contacts
If you have any further questions, please contact our Managed Services team Julia Unkel (julia.unkel@pwc.com), Jonathan Dienlin (jonathan.dienlin@pwc.com) and Stephan Weber (stephan.weber@pwc.com). In addition, feel free to register to our PE webcast series (link) where we, among others, also cover this topic more in-depth during the session "Managed Services for PE" on 30 January 2025 by Julia Unkel.
Your Private Equity Contacts
Steve Roberts PE Leader EMEA and Germany steven.m.roberts@pwc.com
Dr. Ralf U. Braunagel PE Tax Lead ralf.ulrich.braunagel@pwc.com
Klaus Bernhard PE CMAAS and ESG Lead klaus.bernhard@pwc.com
Patrick Devine Deals Technology Leader patrick.devine@pwc.com
Dominik Roland PE S& Lead dominik.roland@pwc.com
Daniel Spengemann PE Audit Lead daniel.spengemann@pwc.com
© 2017 - 2025 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
Follow us
