Sunday, February 18, 2007

Private Equity

Steve Rosenbush has a good analysis of Private equity in Business week.

Private equity slowdown

was surprised to see that the early read on this year's M trends. Yes, I know. We're just five weeks into the year, so it's arguably too early to draw any conclusions. But the magnitude of the slowdown in total M deals, not to mention private equity, is significant. And as private equity slows down, the volume of stock-based transactions undertaken by strategic investors is on the rise. All this data is fresh from Dealogic. I delve into it at greater length here. I think there's compelling evidence that strategic buyers are gaining leverage in the marketplace as equity values rise and price private equity players out of the market, a point that Credit Suisse's Americas M chief Boon Sim explains succintly in the story.