Sponsored Video: P2Ps within reach – if prepared

Changes to the Takeover Code came into effect in September 2011, leading private equity to fear the industry would be put on an unlevel playing field with cash-rich corporates. Now, just over a year on, it seems some of these fears were unfounded.

"Overall, the changes have meant a shift in power from the offeror back to the target," says Khawaja, explaining that the requirement to name potential offerors reveals the interested private equity parties. "The 'put-up-or-shut-up' requirement is less of a concern as the panel is allowing the deadline to be extended," he adds. This is crucial – prior to the changes' implementation, the private equity community feared an inability to line up financing with the four-week period.

It does mean private equity firms are more proactive in their approaches to listed targets in the UK. "The time between approach and formal bid has decreased," says Secrett. "Because of all the planning required at an early stage, we are seeing advisers being brought in earlier in the process." So despite fears widespread in the run-up to the changes coming into force, private equity hasn't been precluded from take-privates. "What the changes have done is shifted emphasis to greater work, sooner."

Grant Thornton’s Philip Secrett and Salmaan Khawaja discuss the impact of the changes to the Takeover Code

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• Take Private