By Hugh MacArthur, Bain & Co Valuation multiples move up and down. Yet for the past 30 years, the average multiple of Ebitda paid for public assets has almost always topped that paid for private assets. In fact, during only three periods historically did private multiples generally exceed the public average: during the “Barbarians at […]
By Matt Stein, CompleteSpectrum From aligning brand messaging during a merger or acquisition to embracing new market opportunities, a PE fund might have a number of reasons to rebrand a portfolio company. Regardless of the motivation, you must consider how others have fared when executing a rebrand and think about what will work best for […]
You know, Dear Reader, that I love talking to limited partners. First off, the LPs I talk to are generally good peoples, and you don’t always run across good peoples in life. Secondly, they know a lot of stuff, and they don’t sugarcoat it, spin it, mask it, or otherwise attempt to distort important information […]
LPs can pull commitments to Rise Fund, Vista gears up for next Endeavor fund
Searchlight’s biggest fund ever seeks $2.75 bln; Aon weighs $24B bid for Willis Tower Watson; Blackstone said to sweeten Goodman's deal
By Scott B. Meyer, Glenview James LLC Time was we had tech deals and non-tech deals. But the world has changed, and today, as Kewsong Lee of Carlyle Group puts it, “every deal is a tech deal.” Even old-school industries are confronting digital transformation. This change has particularly hit home in private equity. Due diligence is the […]
Raising long-duration funds gives buyout shops the flexibility to own companies for far longer than they would through conventional limited partnerships. But that doesn’t mean their investors will necessarily be starved for liquidity. Take the example of Ascend Learning, a professional training and testing company that in mid-February borrowed $350 million to help pay a dividend […]
By Tom Wyatt, KinderCare News reports lamenting the loss of Toys ‘R’ Us this holiday have brought the debate over the perils of private equity top of mind. For us at KinderCare, the demise of the former retail giant stands in stark contrast to our story with PE. While there are similarities between the two […]
By Jordan Myers, Alston & Bird The framework for defining EBITDA in middle-market credit agreements is often portable from one industry to another. But the one-size-fits-all approach does not work for the restaurant industry. In credit agreements, understanding industry-specific adjustments is critical to effectively negotiating EBITDA and related definitions and achieving fair outcomes for borrowers […]
By Nadim Malik and Brenden Gobell, Sutton Place Strategies As private equity and M&A activity gains momentum in 2019, the question on everyone’s mind is, “How long can the current economic expansion continue?” With purchase multiples at or near all-time highs and PE fundraising and dry powder at record levels, one can’t help but wonder […]