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Acquisition Criteria: What Every Private Equity Firm is Looking For

Value Scout

Private equity firms provide meaningful investment capital to growth-oriented businesses. Unlike venture capital firms, they do not invest primarily in start-ups. Businesses seeking expansion, change of investors, or even exit may benefit from private equity firms.

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How to Start a Private Equity Firm – and Why You Probably Shouldn’t

Brian DeChesare

If you search for “how to start a private equity firm” online, you’ll find results that range from useless to tangentially useful to occasional nuggets of real wisdom. Starting a private equity firm is a bad decision for ~95% of people who work in the finance industry. How Does It Work?

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Private Equity Value Creation: Equally Viable Alternative to PE Deal Teams?

Brian DeChesare

Private equity value creation came on my radar a few years ago when I noticed something: Even though traditional PE deal roles were not doing well, “operational” or “value creation” teams still seemed to be recruiting. What Does the Private Equity Value Creation Team Do in Real Life?

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Industrials Private Equity: The Best Place for Old-School Deals at Reasonable Multiples?

Brian DeChesare

If you ever tire of the hype around tech, industrials private equity might be an ideal hiding spot. Morgan’s acquisition of Carnegie Steel in 1901 – was an industrials private equity deal. Table Of Contents Industrials Private Equity Defined What Has Drawn Private Equity Firms to Industrials Companies?

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E-commerce Is Booming – What Does That Mean for Me as a Seller?

FE International

At the lower end of the market, individuals are still leaving their jobs to buy businesses and at the higher end, institutional investors and private equity firms have more capital available than ever before. multiple of SDE or EBITDA. Aggregators vs. Private Equity Firms.

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Leveraged Buyouts

Andrew Stolz

The buyer (the “sponsor”) raises debt and equity to acquire the target. It borrows the majority of the purchase price and contributes proportionately small equity investment. The LBO ratios can go to 90% of debt and 10% of equity. A private equity firm aims a target return of around 20 – 25% (WallStreetMojo, 2018).

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How to Create LBO Analysis – Step-by-Step Guide with Example

Equilest

Leveraged Buyouts (LBOs) are powerful tools in the financial world, used by private equity firms and savvy investors to maximize returns. They involve acquiring a company using a mix of debt and equity, where the acquired company’s cash flows are used to service the debt. Ready to master the art of LBOs?