Private Equity Outperforms Public Equity Private equity has nearly always demonstrated that it’s an asset class which produces steadier, more reliable returns than those of public equities. Notice how after a period of heavy stock market volatility around the world, buyout funds usually continue to outperform public equity markets in all major
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Merger Arbitrage Strategies – Part 2 of a 2 Part Series Active or Passive Strategies The arbitrageur can generate returns either actively or passively. Active arbitrageurs purchase enough stock in the target to control the outcome of the merger. These activist investors initiate sales processes or hold back support from ongoing mergers in
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Merger Arbitrage Strategies – Part 1 of a 2 Part Series Merger arbitrage, otherwise known as “risk arbitrage,” is an investment strategy that primarily focuses on mergers and acquisitions (M&A) and capturing the spreads on announced deals. This strategy falls within the category of event-driven investing, which exploits inefficiencies that can
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What is Your Business Exit Strategy? – Part 4 of a 4 Part Series on Exit Strategy Exit Strategy The exit strategy needs the full support of those given the responsibility for delivering the targets that have been set. This may be restricted to the owners of a business, but often
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What is Your Business Exit Strategy? – Part 3 of a 4 Part Series on Exit Strategy Valuation The exit strategy will elucidate many important aspects of the decision to exit. Is there an optimum time to exit? What is the current estimated market value? Does the business currently look attractive
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What is Your Business Exit Strategy? – Part 2 of a 4 Part Series on Exit Strategy Timeframes Any owner looking to divest within two to three years should start formulating his exit strategy now. He should assume at least six to nine months of time will be required to complete
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What is Your Business Exit Strategy? – Part 1 of a 4 Part Series on Exit Strategy All business owners are linked by one simple fact – when they decide to exit their business they want to make sure they get the best deal. Getting the best deal involves planning for
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Considering a Management Buyout (MBO)? – Part 5 of a 5 Part Series on MBOs The MBO Process Undertaking an MBO is a time consuming and complex process. In general, an MBO will follow a five step process from initiation to completion. These steps will generally proceed in sequence although there
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Considering a Management Buyout (MBO)? – Part 4 of a 5 part series on MBOs Critical Success Factors Management Team Corporate financiers will often say that the three most important ingredients for a successful MBO are “management, management, management” meaning that the quality of the management team is the most important
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Considering a Management Buyout (MBO)? – Part 3 of a 5 Part Series on MBOs MBO Benefits An MBO is attractive to both seller and management for several reasons. Management gains independence and autonomy and an opportunity to influence the future direction of the company with the prospect of significant capital
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