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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