“$163 million?!!!? Hey, Terminate ME!” (Break-up fees in the middle market)
Hillshire Brands agreed last month to acquire Pinnacle Foods for $4.3 billion in a deal intended to broaden Hillshire’s product offerings beyond Ball Park hot dogs, Jimmy Dean sausages, and other protein products by adding Pinnacle’s roster of iconic grocery brands including Birds Eye, Mrs. Paul’s, Log Cabin, Duncan Hines, Vlasic and more. The market […]
R&D conference at MIT Features Presentations by Leading Experts
Startups and Inventors – Consider participating as a startup exhibitor in this year’s MIT R&D conference on November 13-14. The conference features research presentations by leading experts and provides opportunities to network with MIT faculty and industry executives. In addition to general sessions, attendees will choose among multiple concurrent tracks with themes.
Private Equity breaks out the Picks and Shovels
With rising valuations driven by a bull market and competition from strategic buyers, private equity firms are increasingly rolling up their sleeves and digging into deals that will require a little more effort in order to achieve their target returns.
Private Equity Exits were down in 2011. PEGs are holding investments longer.
A recent study by Pitchbook and Grant Thornton has discovered that Private Equity groups are holding on to their investments for longer, 4.8 years is the median “hold” time as discussed in “Private Equity Exits Report: 2012 Annual Edition”.
Leveraged Loans for Take-Overs and LBOs are Back
Banks have again started to provide large bridge financings for deals, and in some case keep all of the lending business for themselves rather than spread the risk over a syndicate, an indication of just how competitive the world of corporate and commercial lending is becoming. Take for example the JPMorganChase $20 billion unsecured bridge loan to fund AT&T’s $39 billion purchase of T-Mobile USA from Deutsche Telekom.
Venture Financing was up in 2010
Overall, Cooley’s data pointed to a year marked by slow but steady improvement in the financing environment. In 2010, deal volumes reached a level not seen in the last five years. Median pre-money valuations increased across all deal stages and saw a significant increase in “up rounds” versus flat/down rounds. Up rounds represented 60% of all financings in 2010, a level not seen since 2008. Additionally, the percentage of recapitalization transactions fell in 2010, though the number of tranched deals remained flat from prior years.
Small Business and Middle Market Outlook 2010
Forbes Insights, in association with CIT, recently published the report “U.S. Small Business and Middle Market Outlook 2010”.
Credit Standards, Loan Covenants, and Rate Spreads Eased in Q2
As banks saw increased competition for commercial & industrial lending, credit standards began to ease in the second quarter, according to the Federal Reserve. Of the senior loan officers surveyed in July, 12.5% indicated a relative easing of credit on large and middle-market borrowers (revenues in excess of $50 million), and 14.5% indicated a relative easing of credit for smaller firms, the first time credit standards have eased for small firms since 2006.
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