Private Equity Newsletter
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PwC Germany I June 2025
Private Equity Webcast:
Responding to US Tariffs - The Race to Rebalance
The new US tariffs are the most recent event driving companies to review their global operating model, however unlike with other events postponing action is NOT an option!
In brief
In this issue our experts David Wijeratne and Jan Paseman share their insights on the current US economic policy with the new tariffs creates significant uncertainty for globally operating companies. As tariffs are increasingly used as a tactical instrument in international politics, the resulting unpredictability in supply chains and cost structures is prompting many firms to delay strategic market decisions and investment plans. In this volatile environment, it is essential for companies to proactively define new strategies and adjust their global footprints to maintain resilience and cost competitiveness amid ongoing uncertainty.
Summary of key aspects
To navigate these challenges effectively, companies are well advised to follow the four steps outlined below:
- Tarif Impact Assessment: Evaluate impact of tariffs on costs structure, supply chain, and profitability to enable strategic decision-making
- Mitigate: Reduce overall impact of tariffs by maximizing existing regulatory and tax levers (e.g. First Sale)
- Absorb: Absorb additional costs from tariffs by increasing prices, renegotiating contracts with suppliers and reviewing costs of operations
- Rebalance: Reduce impact of tariffs by rebalancing global value chains through alternative manufacturing and sourcing locations with less tariff exposure
Implications
Given the current economic environment, Private Equity firms must act decisively to safeguard portfolio performance and identify competitive advantages.
- Rather than deferring action, PE firms should conduct a systematic impact assessment across their portfolios to identify businesses with high exposure to tariff-related cost volatility, supply chain dependencies, and broader geopolitical risks.
- Based on these insights, firms should support portfolio companies—aligned with their sector focus—in developing resilient operating models through footprint diversification, nearshoring, and supplier base realignment.
- By combining short-term "no-regrets" measures with long-term strategic investments, companies can return to a path of growth within a more robust and future-ready setup.
Private Equity Webcast
Join us for the upcoming webcast “U.S. Tariffs Impact on Deals” on 26 June from 4:30 PM to 5:30 PM CEST with our experts Dr Michael Tervooren, Dr Johann Wenzl, Dirk Bliort Wilcke, and Felix Posch to explore and discuss the implications of recent changes in U.S. trade policy on transactions and deal-making (register here).
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
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