Bob Rivollier Discusses the Rise in PE Carve-out Deals

Private equity partner Bob Rivollier offered insight to S&P Global, explaining how evolving corporate strategies are influencing dealmaking.

“A lot of corporates are reassessing their priorities and refocusing on core operations. And because of that, they're divesting noncore operations," Bob said.

He also noted that regulatory requirements are playing a role in driving some of this activity.

“We're seeing more forced divestitures from an antitrust perspective, there’s a number of transactions and strategic combinations that are in the market right now that are going through [Federal Trade Commission] or [Department of Justice] review, and where as part of the government's approval of the transaction, they're requiring divestitures," Bob said.

With increased seller activity and sustained buyer interest, “you have a whole private equity industry that is trying to do deals and deploy capital, and you combine that with corporates that are increasingly divesting noncore operations. You take those two together, you'll see an increasing volume,” he added.