On the first trading day of 2020, a typical headline was “Dow jumps 300 points to start 2020, continuing last year’s big rally.” The S&P 500 was up 28.9% in 2019. US GDP was up 2.3%, not quite the growth seen in 2017 and 2018, but still pretty good from where we stand today. Our […]
After years, and often decades, of building a business, the sale and transition from day-to-day ownership responsibilities are life changing events. With the sale comes liquidity and the freedom to pursue interests beyond the business world. The transition from ownership responsibilities can be dramatic, even for those owners who stay on with the business. One […]
Smaller Software Companies Enjoy Increased Options Based on Growing Private Equity Interest in Technology
Over the last five years the technology sector has attracted an increasing number of private equity investors. More specifically, platform investments (financial) and follow-on acquisitions (hybrid) have grown 25% and 30% respectively over the last five years, based on our analysis of CAPIQ data. When we parsed the data to identify the most active private […]
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 […]
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.
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”.
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.
Two commercial finance companies focused on lending to small and middle-market companies received new capital investment from private equity firms in May.