Private equity firms have become an important player in the acquisition market. These private investment groups offer

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Private equity firms have become an important player in the acquisition market. These private investment groups offer to buy a target firm, often with the cooperation of management, and then take the firm private. Private equity buyers tend to finance a significant portion of the acquisition with debt.

a What types of firms would make ideal candidates for a private equity buyout? Why?

b How might the acquirer add sufficient value to the target to justify a high buyout premium?

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Business Analysis And Valuation

ISBN: 978-1473758421

5th Edition

Authors: Erik Peek, Paul Healy, Krishna Palepu

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