The document summarizes research from the Centre for Management Buyout Research on the impact of private equity investors on portfolio companies. Some key findings include:
1) Buyouts generally improve operating profitability and productivity compared to non-buyouts in the first few years. However, more recent public-to-private deals have not shown as high returns.
2) Private equity backing leads to refocusing, divestment, and higher entrepreneurial actions like new product development compared to non-buyouts. This drives improved growth and investment.
3) Active private equity firm monitoring and experienced industry-focused boards play an important role in creating value through strategy development and timely restructuring of distressed firms.
Pascal Hartmann is a German sociologist and an experienced strategy executive and theory designer. He is also the Director of the R & D Department at Logon Architecture. With an eye to the future, his work embraces the architectural heritage of the city in a sustainable fashion.
ACG European Capital Tour: Investing pitfalls / lessons learned and big succe...ACGEU
The document summarizes a presentation by Alvarez & Marsal on opportunities in the European market. It discusses 1) the current state of the European sovereign debt crisis and its impact on private equity and distressed markets, 2) middle market opportunities including financial institutions selling non-performing assets and distressed debt investing, and 3) potential pitfalls for private equity investors to avoid. The presentation also reviews M&A trends and outlook by country and sector. Key takeaways are the availability of portfolio and corporate carve-out deals, and the need for private equity investors to thoroughly understand business fundamentals and have contingencies planned.
1. The document provides an overview of PT. Sarijaya Permana Sekuritas, a securities company in Yogyakarta, Indonesia. It discusses how the stock market works, price behavior, and buying and selling of stocks.
2. Technical analysis charts and indicators are presented for several stocks, including daily price and volume data. Common chart patterns like double tops, head and shoulders, and triangles are also explained.
3. Trading strategies are outlined for identifying buy and sell signals based on trend analysis, price breaks, and the use of moving averages and oscillators.
The document provides an outline for a technical analysis training on November 12, 2009 presented by Haryajid Ramelan. It includes an introduction to technical analysis, fundamentals versus technical analysis, Dow theory, trends and their uses, accumulation and distribution, support and resistance, Fibonacci numbers, patterns, and tips for investors. The training will cover technical analysis concepts, charts, indicators, and how to evaluate market conditions and investment performance.
Vertical format for trading account, profit and loss account & balance sheetSAITO College Sdn Bhd
1) The document provides a trial balance, adjustments, and additional financial statements for ACE Trading for the year ended 2005.
2) It includes a trial balance, adjustments, trading account, profit and loss statement, and balance sheet.
3) The balance sheet shows total assets of RM122,200 consisting of fixed assets, current assets and closing capital of RM67,500, with current and long term liabilities making up the remaining balance.
This document provides a budget forecast and financial analysis for expanding McDowell's restaurant. It includes projections for revenue and expenses from 2009-2013, showing steady growth and net earnings each year. It also evaluates 5 potential sites for expansion, scoring them based on distance from city center, building cost, and space. The best option is site A5. Finally, it models two financing options for expanding, comparing loan amounts, interest rates, monthly payments, and total costs to determine the most favorable terms.
The document summarizes an open house for a commercial redevelopment study in Midtown Fort Collins. It provides information on the project team from Fregonese Associates and Economic & Planning Systems. It analyzes retail and housing demand, opportunity sites, conceptual plans including prototypes, and discusses redevelopment of Foothills Mall. Next steps outlined include evaluating feasibility, financing options, recommendations, and an implementation action plan.
Pascal Hartmann is a German sociologist and an experienced strategy executive and theory designer. He is also the Director of the R & D Department at Logon Architecture. With an eye to the future, his work embraces the architectural heritage of the city in a sustainable fashion.
ACG European Capital Tour: Investing pitfalls / lessons learned and big succe...ACGEU
The document summarizes a presentation by Alvarez & Marsal on opportunities in the European market. It discusses 1) the current state of the European sovereign debt crisis and its impact on private equity and distressed markets, 2) middle market opportunities including financial institutions selling non-performing assets and distressed debt investing, and 3) potential pitfalls for private equity investors to avoid. The presentation also reviews M&A trends and outlook by country and sector. Key takeaways are the availability of portfolio and corporate carve-out deals, and the need for private equity investors to thoroughly understand business fundamentals and have contingencies planned.
1. The document provides an overview of PT. Sarijaya Permana Sekuritas, a securities company in Yogyakarta, Indonesia. It discusses how the stock market works, price behavior, and buying and selling of stocks.
2. Technical analysis charts and indicators are presented for several stocks, including daily price and volume data. Common chart patterns like double tops, head and shoulders, and triangles are also explained.
3. Trading strategies are outlined for identifying buy and sell signals based on trend analysis, price breaks, and the use of moving averages and oscillators.
The document provides an outline for a technical analysis training on November 12, 2009 presented by Haryajid Ramelan. It includes an introduction to technical analysis, fundamentals versus technical analysis, Dow theory, trends and their uses, accumulation and distribution, support and resistance, Fibonacci numbers, patterns, and tips for investors. The training will cover technical analysis concepts, charts, indicators, and how to evaluate market conditions and investment performance.
Vertical format for trading account, profit and loss account & balance sheetSAITO College Sdn Bhd
1) The document provides a trial balance, adjustments, and additional financial statements for ACE Trading for the year ended 2005.
2) It includes a trial balance, adjustments, trading account, profit and loss statement, and balance sheet.
3) The balance sheet shows total assets of RM122,200 consisting of fixed assets, current assets and closing capital of RM67,500, with current and long term liabilities making up the remaining balance.
This document provides a budget forecast and financial analysis for expanding McDowell's restaurant. It includes projections for revenue and expenses from 2009-2013, showing steady growth and net earnings each year. It also evaluates 5 potential sites for expansion, scoring them based on distance from city center, building cost, and space. The best option is site A5. Finally, it models two financing options for expanding, comparing loan amounts, interest rates, monthly payments, and total costs to determine the most favorable terms.
The document summarizes an open house for a commercial redevelopment study in Midtown Fort Collins. It provides information on the project team from Fregonese Associates and Economic & Planning Systems. It analyzes retail and housing demand, opportunity sites, conceptual plans including prototypes, and discusses redevelopment of Foothills Mall. Next steps outlined include evaluating feasibility, financing options, recommendations, and an implementation action plan.
Sustainable Organisations: Can businesses solve social and environmental issu...London Business School
London Business School Assistant Professor of Strategy and Entrepreneurship, Ioannis Ioannou, presents his insights on how organisations can take a greener approach to the way they do business and succeed.
This was presented on 20 Nobvember 2012, at a London Business School Meeting. Watch the video footage at http://bit.ly/UrtfYc.
Parker is the world's leading manufacturer of motion and control technologies. In 2006, Parker achieved record financial results including $9.4 billion in sales, a 16.3% increase over 2005. Net income increased 19.7% to $638.3 million. Cash flow from operations reached a record $954.6 million. Parker's diversification across hundreds of markets, 57,000 employees, and 417,000 customers helps drive consistent growth and mitigate risks from economic cycles.
The document discusses using insurance to manage risk in oil and gas operations. It outlines the different risk profiles of operators and contractors, and how contractual agreements allocate those risks. While insurance can transfer some risks like property damage, liability, and business interruption, it has limitations. Captive insurance companies and self-insurance may help fill coverage gaps. The current commercial insurance market is hardening with rising costs and more exclusions. Risk management strategies need multiple tools beyond just insurance.
This document contains financial information for The TJX Companies, Inc. over several fiscal years:
- Diluted earnings per share from continuing operations increased from $0.65 in fiscal 1999 to $1.08 in fiscal 2003. Net sales and income from continuing operations also increased over this period.
- Total stores increased from 1,246 in fiscal 1999 to 1,843 in fiscal 2003 as the company expanded several brands such as T.J. Maxx, Marshalls, HomeGoods, and Winners.
- Cash flow from operating activities was strong, ranging from $556 million to over $900 million between fiscal 1999-2003, allowing the company to invest in property additions and repurchase shares.
As Facebook announced its upcoming IPO, lots of interrogations are still pending about the relevance of such an important valorization, whereas the website’s revenues are still border line.
This longed-for IPO is the occasion to come back on the short history of this social network and to understand better the bases on which he is developed.
It’s also the occasion to anticipate the issues which it would facing with, to forecast the areas of growth that would enable it to concretize his current success, and see how this company might be a potential source of benefits.
The document defines the key variables that determine supply and demand. It shows that supply and demand depend on price, income, prices of related goods, and other factors. Graphs and tables demonstrate how supply and demand schedules work, and how equilibrium price and quantity are reached at the point where the two schedules intersect.
We are alive! Now what? by Kārlis CērbulisRoberts Zīle
Brilliant and professional look at the current economical situation of Latvia. Kārlis Cērbulis is one of the bright economical minds in Latvia and collegue of mine in the economist association "EA2010" Enjoy!
www. parker.com/aboutus With annual sales exceeding $13 billion in fiscal year 2012, Parker Hannifin is the world’s leading diversified manufacturer of motion and control technologies and systems. Strong competitive advantages, a clear strategy and goals, consistent execution and performance, and many opportunities for growth, have allowed the company to consistently deliver strong shareholder returns. Parker has increased its annual dividends paid to shareholders for 56 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index.
- PRT Growing Services Ltd. is the largest producer of container grown forest seedlings in North America, with 13 nursery sites and over 425 employees.
- The presentation discusses PRT's competitive position, contracted revenue stream, forest seedling market drivers including the housing market and export markets, and the impact of the US housing market downturn on PRT's financial performance between 2008-2011.
- Looking ahead, PRT's growth strategies include leveraging an expected housing market recovery, expanding into regional forestry markets, diversifying into non-forestry starter plants and hardwood seedlings.
This document summarizes a presentation by Situs, a commercial real estate services firm. It discusses the history of land development in Houston from the postwar period to today. It describes how the population rapidly suburbanized from 1946-1980 as people moved to new subdivisions outside the city. It then details how Houston experienced a boom and bust in the 1980s, with a surge in suburban development in the early part of the decade followed by the oil bust and S&L crisis. Finally, it notes that distressed land sales by government agencies in the 1990s fueled new development after a period of slow growth.
The 2003 annual report summarizes Fiserv's financial performance for the year. Some key highlights include:
- Processing and services revenues increased 22% to $2.7 billion.
- Net income grew 18% to $315 million.
- Diluted earnings per share rose 18% to $1.61.
- Cash flow from operations increased 16% to $598.1 million.
- The number of employees grew 12% to 21,700 and number of clients increased 15% to 15,000.
PAYU provides an affordable pay-as-you-go computing platform for accessing the internet and digital services in East Africa. It utilizes a novel combination of wireless and cloud technologies through local servers and thin client computers. Users can access a variety of shared applications and content by purchasing vouchers to refill their account, allowing connectivity wherever a wireless signal is available. The system is aimed at increasing digital access and usage in Sub-Saharan Africa through a low-cost and customizable shared infrastructure model.
HQ Bank has experienced volume driven growth in its credit portfolio over the past 9 months of 2008. While the portfolio increased 8% in local currencies, bad debt provisions increased in several markets. The bank has a well balanced portfolio that is diversified across exposure levels, geographic areas, and products. It maintains a conservative refinancing policy and manages risks through matched funding and credit risk management.
Presentation by Mr Kārlis Cerbulis, economics expert, Senior Vice President, NCH Advisors Inc. Baltic States at EP ECR group meeting in Riga, Latvia on September, 2010.
SSI Event monetization method and Startups01Booster
(1) The document discusses various business models for monetizing digital content and services, including freemium, premium subscriptions, affiliate marketing, and advertising.
(2) It also examines different types of business relationships like B2B, B2C, C2C and how startups in different regions and countries approach monetization. Challenges for international expansion are mentioned.
(3) Examples of startups and their monetization strategies are provided for various sectors like education, events, marketplace, social networking and more. Revenue sharing, commissions, fees for additional features are some common approaches.
The Open Access movement gains momentum – should young scientists care?Martin Ballaschk
This presentation acommodated a talk I held at the 14th PhD retreat of the two Berlin life science institutes MDC and FMP. Other participants included Zena Werb (UCSF), Helmut Kettenmann (MDC), Paul Schultze-Motel (Helmholtz OA Office) and Angelika Lex (Elsevier).
The main introductory points have bee adressed by a moderator before, so I don't introduce definitions of green and gold open access. The talk is focused on open access journals (what is commonly perceived as "the" open access) and the PhD's students view on it, but also mentions the possibility of deposition of "unfree" publications in publicly accessable repositories ("green OA") as an alternative.
The goal of the discussion and the presentation was to raise awareness for the journal crisis, the possibility of funding and fee waivers in OA journals, and scientist's vs. publisher's interests.
The document discusses NYC Startup The present and Future by George Goda of WEGLO Inc., focusing on why Goda chose to start his company in NYC. It includes charts showing population and population density of major cities around the world, with NYC having the largest population of any city. The document also briefly mentions challenges Goda faced starting during the 2008 financial crisis and how he addressed issues of seed funding, incubation, and co-working space.
Shelub cdc health care professional travel lectureAaron Shelub
This document provides an overview of travel medicine and the pre-travel consultation process. It discusses key topics including travelers' health epidemiology, assessing the traveler, reviewing the travel itinerary, common travel health risks such as malaria, hepatitis A, typhoid fever and travelers' diarrhea. It also reviews important travel vaccines including hepatitis A and B, typhoid, yellow fever and malaria chemoprophylaxis. The document is intended as an educational reference for healthcare professionals conducting pre-travel health consultations.
This document provides an overview of wealth management strategies for affluent investors, focusing on hedge funds and private equity. It discusses what hedge funds and private equity are, common characteristics and strategies, manager incentive structures, historical returns, and implementation considerations. It also reviews endowment models, summarizing historical investment returns and asset allocations of Yale and Harvard University endowments. Finally, it compares different methods of investing and five key considerations for selecting investment types - management, taxation, costs, control, and liquidity.
This presentation discusses the importance of front-end regulations when issuing debt, and the importance of conducting an adequate due diligence before investing in sovereign debt. Ignoring the details of applicable law to a bond issuance are not “back-end changes” when an issuer implements measures authorized by applicable law.
Sustainable Organisations: Can businesses solve social and environmental issu...London Business School
London Business School Assistant Professor of Strategy and Entrepreneurship, Ioannis Ioannou, presents his insights on how organisations can take a greener approach to the way they do business and succeed.
This was presented on 20 Nobvember 2012, at a London Business School Meeting. Watch the video footage at http://bit.ly/UrtfYc.
Parker is the world's leading manufacturer of motion and control technologies. In 2006, Parker achieved record financial results including $9.4 billion in sales, a 16.3% increase over 2005. Net income increased 19.7% to $638.3 million. Cash flow from operations reached a record $954.6 million. Parker's diversification across hundreds of markets, 57,000 employees, and 417,000 customers helps drive consistent growth and mitigate risks from economic cycles.
The document discusses using insurance to manage risk in oil and gas operations. It outlines the different risk profiles of operators and contractors, and how contractual agreements allocate those risks. While insurance can transfer some risks like property damage, liability, and business interruption, it has limitations. Captive insurance companies and self-insurance may help fill coverage gaps. The current commercial insurance market is hardening with rising costs and more exclusions. Risk management strategies need multiple tools beyond just insurance.
This document contains financial information for The TJX Companies, Inc. over several fiscal years:
- Diluted earnings per share from continuing operations increased from $0.65 in fiscal 1999 to $1.08 in fiscal 2003. Net sales and income from continuing operations also increased over this period.
- Total stores increased from 1,246 in fiscal 1999 to 1,843 in fiscal 2003 as the company expanded several brands such as T.J. Maxx, Marshalls, HomeGoods, and Winners.
- Cash flow from operating activities was strong, ranging from $556 million to over $900 million between fiscal 1999-2003, allowing the company to invest in property additions and repurchase shares.
As Facebook announced its upcoming IPO, lots of interrogations are still pending about the relevance of such an important valorization, whereas the website’s revenues are still border line.
This longed-for IPO is the occasion to come back on the short history of this social network and to understand better the bases on which he is developed.
It’s also the occasion to anticipate the issues which it would facing with, to forecast the areas of growth that would enable it to concretize his current success, and see how this company might be a potential source of benefits.
The document defines the key variables that determine supply and demand. It shows that supply and demand depend on price, income, prices of related goods, and other factors. Graphs and tables demonstrate how supply and demand schedules work, and how equilibrium price and quantity are reached at the point where the two schedules intersect.
We are alive! Now what? by Kārlis CērbulisRoberts Zīle
Brilliant and professional look at the current economical situation of Latvia. Kārlis Cērbulis is one of the bright economical minds in Latvia and collegue of mine in the economist association "EA2010" Enjoy!
www. parker.com/aboutus With annual sales exceeding $13 billion in fiscal year 2012, Parker Hannifin is the world’s leading diversified manufacturer of motion and control technologies and systems. Strong competitive advantages, a clear strategy and goals, consistent execution and performance, and many opportunities for growth, have allowed the company to consistently deliver strong shareholder returns. Parker has increased its annual dividends paid to shareholders for 56 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index.
- PRT Growing Services Ltd. is the largest producer of container grown forest seedlings in North America, with 13 nursery sites and over 425 employees.
- The presentation discusses PRT's competitive position, contracted revenue stream, forest seedling market drivers including the housing market and export markets, and the impact of the US housing market downturn on PRT's financial performance between 2008-2011.
- Looking ahead, PRT's growth strategies include leveraging an expected housing market recovery, expanding into regional forestry markets, diversifying into non-forestry starter plants and hardwood seedlings.
This document summarizes a presentation by Situs, a commercial real estate services firm. It discusses the history of land development in Houston from the postwar period to today. It describes how the population rapidly suburbanized from 1946-1980 as people moved to new subdivisions outside the city. It then details how Houston experienced a boom and bust in the 1980s, with a surge in suburban development in the early part of the decade followed by the oil bust and S&L crisis. Finally, it notes that distressed land sales by government agencies in the 1990s fueled new development after a period of slow growth.
The 2003 annual report summarizes Fiserv's financial performance for the year. Some key highlights include:
- Processing and services revenues increased 22% to $2.7 billion.
- Net income grew 18% to $315 million.
- Diluted earnings per share rose 18% to $1.61.
- Cash flow from operations increased 16% to $598.1 million.
- The number of employees grew 12% to 21,700 and number of clients increased 15% to 15,000.
PAYU provides an affordable pay-as-you-go computing platform for accessing the internet and digital services in East Africa. It utilizes a novel combination of wireless and cloud technologies through local servers and thin client computers. Users can access a variety of shared applications and content by purchasing vouchers to refill their account, allowing connectivity wherever a wireless signal is available. The system is aimed at increasing digital access and usage in Sub-Saharan Africa through a low-cost and customizable shared infrastructure model.
HQ Bank has experienced volume driven growth in its credit portfolio over the past 9 months of 2008. While the portfolio increased 8% in local currencies, bad debt provisions increased in several markets. The bank has a well balanced portfolio that is diversified across exposure levels, geographic areas, and products. It maintains a conservative refinancing policy and manages risks through matched funding and credit risk management.
Presentation by Mr Kārlis Cerbulis, economics expert, Senior Vice President, NCH Advisors Inc. Baltic States at EP ECR group meeting in Riga, Latvia on September, 2010.
SSI Event monetization method and Startups01Booster
(1) The document discusses various business models for monetizing digital content and services, including freemium, premium subscriptions, affiliate marketing, and advertising.
(2) It also examines different types of business relationships like B2B, B2C, C2C and how startups in different regions and countries approach monetization. Challenges for international expansion are mentioned.
(3) Examples of startups and their monetization strategies are provided for various sectors like education, events, marketplace, social networking and more. Revenue sharing, commissions, fees for additional features are some common approaches.
The Open Access movement gains momentum – should young scientists care?Martin Ballaschk
This presentation acommodated a talk I held at the 14th PhD retreat of the two Berlin life science institutes MDC and FMP. Other participants included Zena Werb (UCSF), Helmut Kettenmann (MDC), Paul Schultze-Motel (Helmholtz OA Office) and Angelika Lex (Elsevier).
The main introductory points have bee adressed by a moderator before, so I don't introduce definitions of green and gold open access. The talk is focused on open access journals (what is commonly perceived as "the" open access) and the PhD's students view on it, but also mentions the possibility of deposition of "unfree" publications in publicly accessable repositories ("green OA") as an alternative.
The goal of the discussion and the presentation was to raise awareness for the journal crisis, the possibility of funding and fee waivers in OA journals, and scientist's vs. publisher's interests.
The document discusses NYC Startup The present and Future by George Goda of WEGLO Inc., focusing on why Goda chose to start his company in NYC. It includes charts showing population and population density of major cities around the world, with NYC having the largest population of any city. The document also briefly mentions challenges Goda faced starting during the 2008 financial crisis and how he addressed issues of seed funding, incubation, and co-working space.
Shelub cdc health care professional travel lectureAaron Shelub
This document provides an overview of travel medicine and the pre-travel consultation process. It discusses key topics including travelers' health epidemiology, assessing the traveler, reviewing the travel itinerary, common travel health risks such as malaria, hepatitis A, typhoid fever and travelers' diarrhea. It also reviews important travel vaccines including hepatitis A and B, typhoid, yellow fever and malaria chemoprophylaxis. The document is intended as an educational reference for healthcare professionals conducting pre-travel health consultations.
This document provides an overview of wealth management strategies for affluent investors, focusing on hedge funds and private equity. It discusses what hedge funds and private equity are, common characteristics and strategies, manager incentive structures, historical returns, and implementation considerations. It also reviews endowment models, summarizing historical investment returns and asset allocations of Yale and Harvard University endowments. Finally, it compares different methods of investing and five key considerations for selecting investment types - management, taxation, costs, control, and liquidity.
This presentation discusses the importance of front-end regulations when issuing debt, and the importance of conducting an adequate due diligence before investing in sovereign debt. Ignoring the details of applicable law to a bond issuance are not “back-end changes” when an issuer implements measures authorized by applicable law.
Distressed Debt Investing: Resources to Help Investors Better Understand The...ManagedFunds
"Distressed Debt Investing: Resources to Help Investors Better Understand Their Investment Options in this Asset Class" is aimed at helping investors better understand their investment options in the distressed debt space. The presentation gives an overview of distressed debt investment and the role these investors play in the bankruptcy process by creating liquidity in the credit markets, lowering the cost of lending, and helping companies that may be close to bankruptcy or in bankruptcy with additional capital.
A Primer on Distressed Debt Investing InfographicManagedFunds
A Primer on Distressed Debt Investing provides easy to understand visual depictions of how distressed debt investing works and explains how these investors often work alongside financially distressed companies to ensure a successful restructuring or bankruptcy proceeding. It also illustrates how distressed debt investments can help provide a number of positive results, including increased liquidity, a positive impact on overall company value, a higher degree of debt recovery, and relief of financial constraints.
Puerto Rico- Distressed Debt Strategy. Duke GS Trade Pitch CompetitionJulio Cesar
The document recommends selling 21-year Puerto Rico general obligation (GO) bonds based on several distressed debt triggers that indicate increased credit risk for Puerto Rico. Specifically, it cites the high coupon rate demanded for recent short-term debt issuance, an underpricing of default risk for Puerto Rico's Highway and Transportation Authority bonds, and a municipal credit risk model that assessed a higher spread than the bonds are currently trading at. The recommendation is to sell the bonds with a target price of $82.75, down from the current price of $88.75.
The document summarizes the 2000 merger between AOL and Time Warner which aimed to create the world's first integrated media and communication company valued at $350 billion. The merger was structured as a stock swap that gave AOL shareholders 55% ownership of the new company. Major problems arose from combining the different cultures of AOL, a growth-focused internet company, and Time Warner, a mature asset-focused media company. There were issues integrating compensation structures and a lack of synergy between divisions. The merger significantly overvalued AOL and failed to yield the forecasted synergies, with AOL's goodwill declining from $220 billion to $20 billion. By 2002, it was clear the merger had not met expectations.
Credit analyst, high yield, distressed debtRonald Rich
Ronald Rich has over 20 years of experience in credit analysis, distressed investing, and corporate restructuring. He has specialized in analyzing high yield and distressed debt across various industries. He currently works as a senior restructuring advisor where he leads negotiations to restructure troubled fixed income investments.
Hasbro is a major American toy and board game company. It was founded in 1923 by brothers Henry and Helal Hassenfeld and is headquartered in Pawtucket, Rhode Island. Some of Hasbro's most popular brands include Transformers, My Little Pony, Nerf, Play-Doh, Monopoly, Scrabble, and GI Joe. In recent years, Hasbro has expanded into digital gaming and film production through acquisitions and partnerships. It remains one of the largest toy makers in the world and a leader in the industry.
An outline of the structure of freight brokerages and the cash flow within a brokerage. Learn the difference between Freight Brokers and Freight Agents. Begin to understand why brokers are so necessary to our shipping industry. For freight broker training visit logisticsacademy.org, become an excellent logistics coordinator.
This document summarizes discussions from a 2008 distressed and turnaround investment forum. It covers the state of the distressed industry after the financial crisis, known and potential after-effects, and predictions of economic forecaster Nouriel Roubini about the impending housing and credit market collapse. Sections analyze the meltdowns in 1990, 2000, and 2008; industries and financial institutions affected; major bank write-offs and hedge fund failures; and an extensive list of collapsed mortgage lenders. The forum aimed to explore investment opportunities arising from the crisis aftermath.
The document provides an overview and agenda for a valuation training session. It discusses various valuation techniques that will be covered, including discounted cash flow (DCF) valuation, multiples valuation using comparable company analysis and comparable transactions analysis, and leveraged buyout valuation. For the DCF approach, it outlines the key inputs and outputs, and for multiples valuation it discusses selecting peer companies, calculating relevant financial multiples, and interpreting the results.
Hasbro is one of the largest toy companies in the world founded in 1923. It has a large portfolio of well-known toy brands such as Transformers, My Little Pony, and Monopoly. While Hasbro has a strong brand portfolio and distribution network, it faces threats from increasing regulations and many substitute products. Potential strategies for Hasbro include outsourcing manufacturing, expanding globally, developing digital media like video games based on its brands, and marketing strategies to leverage its classic toy brands in new digital entertainment. However, focusing first on creating new digitally-driven characters and entertainment may be a better long-term strategy than short-term exploitation of existing toy brands.
This document provides an overview of the principles of valuation for mergers and acquisitions. It discusses key terms like mergers, acquisitions, and types of M&A deals. It also outlines common motives for M&A like strategic gains, financial benefits, and managerial motives. The mechanics of an M&A deal including antitrust laws and accounting treatment are summarized. The document uses the AOL-Time Warner merger as a case study, outlining the motives and valuation of the two companies at the time of the announced deal.
Tata Tea acquired Tetley Tea through a leveraged buyout (LBO) to gain access to Tetley's international operations and compete globally. An LBO involves using mostly debt rather than equity to finance an acquisition. For the Tata-Tetley deal, a special purpose vehicle was created with equity from Tata Tea and debt financing secured by Tetley's assets. This isolated risk and allowed Tata Tea to purchase Tetley while only contributing equity of 70 million pounds itself. The LBO provided Tata Tea an entry into global tea markets through an established brand.
Leveraged buyouts (LBOs) involve using a large amount of debt to purchase a firm. Typically over 80% of the purchase price is financed through debt secured by the acquired firm's assets. Good LBO candidates have stable cash flows to service the debt, assets to collateralize loans, and a strong competitive position. The APV (adjusted present value) method values a leveraged firm by separately considering the value of operations and tax benefits of debt net of distress costs from high leverage.
A leveraged buyout (LBO) involves using borrowed money to acquire a company, with the acquired company's assets used as collateral. Private equity firms will typically finance 70% or more of the purchase price through borrowing, with the remaining 30% as equity. The debt holders receive a fixed rate of return, while the equity holders seek very high returns. If successful, the equity holders can realize their returns within 3-5 years by selling the company or taking it public.
The document provides background information on the failed merger between AOL and Time Warner. It summarizes the histories of both companies, details the merger, and analyzes why it ultimately failed. The key reasons for failure included poor timing due to AOL's overvaluation, non-operational distractions, unrealistic growth expectations, a lack of strong leadership to integrate the companies and overcome cultural differences, and an overly politicized structure that hindered collaboration. The merger is now seen as one of the most remarkable corporate miscalculations.
The document discusses the impacts of the global economic crisis following the financial crisis of 2008. It notes that many developing countries were innocent victims despite not being involved in subprime lending. The crisis led to a collapse in asset prices, economic recession, and declining growth rates around the world. Commodity prices and capital flows also reversed, straining the finances of developing nations. The document advocates for improved international cooperation and policy responses to mitigate the crisis impacts.
Circulation Revenue - The other Revenue StreamEdward Baral
Traditionally newspapers have had a focus on advertising revenues. This presentation examines how ignoring circulation revenue can have a very detrimental impact on the bottom line. It also demonstrates that it is possible to charge more and still hold circulation. This paper was presented at Publish Asia 2009.
China, India, and the future discusses the rapid economic growth of China and India compared to other economies like the UK. Some key points:
- Car sales in China have risen 300% in the past 5 years, 60% in India, versus 0.2% in the UK.
- China's GDP and investment in fixed assets like infrastructure are much higher than India's, contributing to its faster growth.
- A policy change in China in the 1990s opened up markets and welcomed foreign investment, fueling high investment and growth rates.
An nfpSynergy presentation on how advice charities are affected by the recession, and how they can combat the effects of the credit crunch. Includes data on how the recession is affecting charity income.
1. The US mortgage market has grown significantly over time, with mortgage debt outstanding growing to over $8 trillion as of 2004, roughly doubling as a percentage of disposable personal income since 1980.
2. Mortgages are originated by a variety of retail institutions and are often sold on the secondary market, with government sponsored entities like Fannie Mae and Freddie Mac securitizing lower risk mortgages that meet certain criteria.
3. The aggregate loan-to-value ratio for owner-occupied housing has increased less sharply than other debt measures and has not increased much since the mid-1990s.
The document summarizes the key aspects of globalization, including the globalization of markets and production. It provides an example of a Vizio TV being designed in California but assembled in Mexico using parts from various countries. It discusses how commodities markets have become more globalized. It also outlines some of the main drivers of globalization like declining trade barriers and technological advances like the internet that have facilitated the global flow of goods, services, and information. However, it also notes some of the criticisms of globalization like its impacts on jobs and wages in advanced countries.
1) Liver transplantation is an effective treatment for end-stage liver disease due to viral hepatitis.
2) The use of prophylactic antiviral therapy and hepatitis B immunoglobulin after transplantation has significantly reduced rates of HBV recurrence from over 50% to less than 10% over the past 15 years.
3) Combination therapy with hepatitis B immunoglobulin and nucleoside analogues may provide better protection against recurrence compared to monotherapy due to pressure on different regions of the HBV genome.
Session1 cdm eligibility of prosol (amel bida, rcreee)RCREEE
The document summarizes a regional workshop on solar thermal applications held in Cairo, Egypt in March 2009. It discusses Egypt's eligibility for Clean Development Mechanism (CDM) projects under the Kyoto Protocol and highlights two potential CDM projects involving Egypt's PROSOL program: (1) a 450,000 square meter residential solar water heating project called PROSOL II, and (2) a 90,000 square meter commercial solar water heating project called PROSOL Collectif. The document provides details on each project's approval status, anticipated greenhouse gas reductions, and socioeconomic benefits.
The document discusses concepts related to stationary and non-stationary time series data. It provides examples of time series data that are non-stationary, exhibiting changing means and non-zero correlation over time, as well as examples of stationary time series with constant means and zero correlation as time increases. The document also discusses techniques for identifying non-stationary processes, such as examining correlograms, and formal unit root tests to establish the stationarity of time series data.
This document discusses hepatitis B virus (HBV) prophylaxis after liver transplantation. It presents data showing that combination therapy with hepatitis B immunoglobulin (HBIG) and nucleoside analogues is superior to HBIG or nucleoside analogues alone in preventing HBV recurrence after transplantation. HBV DNA levels pre-transplant and presence of hepatocellular carcinoma are risk factors for recurrence. Long-term HBIG monotherapy is less effective than combination therapy or adding nucleoside analogues due to development of escape mutations. The optimal prophylaxis is to reduce HBV DNA to undetectable levels before transplantation and use combination HBIG and nucleoside analogues therapy after transplantation.
The document summarizes the state of the global wool market in 2011. It finds that world wool prices increased significantly from 2010 levels. Wool demand is recovering due to economic growth and higher consumer confidence, though unemployment remains high. The textile industry is seeing increased activity and orders, particularly in Europe. Global wool production declined slightly in 2010 but is expected to stabilize or increase slightly going forward as high wool prices encourage production. Overall the outlook for wool demand and prices remains positive.
The document discusses the growth of online video between 2006-2010. It notes that the number of people streaming videos in the US increased from around 120 million in 2006 to over 160 million in 2010. Additionally, the number of videos streamed grew from 63 billion to over 441 billion during this period. The amount spent on online video advertising also increased dramatically, from $324 million in 2006 to $1.44 billion in 2010.
ACFTA Trickle Down Effect: ICT Education Roles on Human Resources Readiness...Djadja Sardjana
• The knowledge-driven economy continues to be
characterized by a rapidly changing and pervasive characterized by a rapidly changing and pervasive
information infrastructure.
• The Internet and its accompanying applications # e-
Business platforms, interactive experiences with new forms of content, sophisticated consumer devices, leading-edge information technology # are all elements of the digital economy.
==> Heavily supported by prominent
ICT Education Institution
This document summarizes safety challenges in the Norwegian fishing industry. It presents statistics showing declines in fishermen numbers and increases in catch per fisherman over time. Several graphs show trends in fatal accidents at sea, with the highest numbers occurring in the 1990s and a generally decreasing frequency since. The document outlines various safety measures and research projects aimed at improving safety, such as training programs, safety manuals, emergency devices, safer vessels and clothing. It discusses current initiatives to further understand and prevent accidents and injuries among fishermen.
1) The document discusses PPP practices and research in China, given by Prof. Dr. ShouQing Wang from Tsinghua University.
2) It outlines China's rapid economic growth and infrastructure development, the challenges faced in PPP projects in China such as lack of clear laws and guidelines, and PPP research areas like risk allocation and public-private partnerships.
3) A case study is presented on the National Stadium for the 2008 Beijing Olympics, which faced disputes over construction costs, design changes, and revenue generation.
Shortening distances with destination branding inglésÁlvaro Fierro
This study shows using econometric techniques that geographic distance does not influence whether the mark is sufficiently embedded in the collective imagination. We as examples mark places near Bilbao
1. Biofuel policies aimed to promote biofuel production have unintentionally increased pressure on land use and distorted the balance between oilseed crops by favoring those with high oil content like oil palm.
2. The biofuel demand for vegetable oils independent of meal demand has tilted cultivation towards oil palm which has much higher oil yield and lower meal content than other oilseeds.
3. High palm oil prices driven by the link between vegetable oil and petroleum prices through biofuel use provide strong incentives for rapid expansion of oil palm plantations in Southeast Asia.
This document discusses SolarCity's history and innovations in the solar industry. It summarizes that SolarCity was founded in 2006 and has since grown to employ hundreds and install solar systems for thousands of customers across California, Arizona, and Oregon. It also describes some of SolarCity's key product innovations like the Soleo platform for system design, financing, installation, and monitoring, the SolarLease financing program, and the Canopy mounting system. The document emphasizes SolarCity's focus on continuous improvement, customer feedback, and empowering employees.
Workshop Hedge Funds and Sovereign Wealth Funds - MorganSocial Europe
The document discusses hedge funds and their role in global financial markets. It provides an overview of hedge fund strategies, including equity hedge, event-driven, macro, and relative value funds. It also discusses key facts about the hedge fund industry such as assets, fees, and the role of prime brokers. While hedge funds can impact companies, the document concludes they pose little threat to financial systems based on their small size and do not require additional consumer protections for investors.
Debriefing and Access to Finance Plenary - LangSocial Europe
KfW is the promotional bank of Germany, founded in 1948 to support post-war reconstruction. It has a balance sheet of EUR 400 billion and provides financing through other banks. KfW supports SMEs, entrepreneurs, environmental projects, housing, education and infrastructure. It works both domestically in Germany and internationally in developing countries. KfW relies on other banks to process loan applications and disburse funds, while KfW provides refinancing at favorable rates. It has also established a network of financial institutions across Europe to improve SME access to finance.
Debriefing and Access to Finance Plenary - KorpiSocial Europe
The document summarizes a workshop on private equity that discussed the diversity of private equity strategies, the mixed employment and wage outcomes of private equity investments, and expectations for the future growth of private equity alongside efforts to promote good practices and provide more data for research. Speakers at the workshop included academics and private equity professionals and focused on topics such as different private equity strategies, employment and productivity effects, and variability in outcomes between firms.
Workshop Employee Financial Participation - CilentoSocial Europe
This document discusses obstacles to the widespread adoption of employee financial participation (EFP) practices in Europe. It outlines prejudices from employees, companies, and trade unions that EFP could undermine collective bargaining or favor capital over labor. However, it argues these prejudices may destroy themselves over time. Costs, tax regimes, and a lack of vehicles for employee shareholders also prevent EFP adoption. The document proposes solutions like tax reforms, collective ownership and governance rights, and a special legal status to encourage EFP, especially in small- and medium-sized enterprises.
Workshop Employee Financial Participation - O KellySocial Europe
This document provides an overview of financial participation and employee share ownership plans internationally and within the EU. It discusses the history of such plans in the US and Europe. It also summarizes several EU initiatives like the PEPPER reports that aim to promote financial participation and address barriers across countries. Finally, it outlines elements of a model financial participation plan, including governance, communications strategies, and general rules.
Workshop Employee Financial Participation - SzestaySocial Europe
This document discusses the employee stock ownership plan (ESOP) implemented at Herend Porcelain Manufactory Ltd. in Hungary. [1] It provides background on Herend and Hungary's economic and political changes from the 1950s-1980s. [2] In the late 1980s, the idea emerged for Herend employees to participate in the company's privatization through an ESOP. [3] The ESOP was established in 1993 according to Hungarian law, with 50% of shares allocated to employees individually and 25% held collectively in an ESOP trust.
Workshop Hedge Funds and Sovereign Wealth Funds - RaymondSocial Europe
Sovereign wealth funds intervened during the 2008 financial crisis to support their domestic economies in three main ways:
1) As "shareholders of last resort" by purchasing stocks in struggling domestic banks and companies.
2) As "lenders of last resort" by providing loans to domestic entities like banks and governments.
3) As "insurance funds" by using reserves to finance budget deficits and economic recovery packages.
While these interventions helped address short-term issues, they are not without risks and their long-term benefits are unclear as using sovereign wealth funds for domestic purposes may undermine their role as long-term savings vehicles for countries.
Workshop Hedge Funds and Sovereign Wealth Funds - HabbardSocial Europe
The document discusses pension fund investments in activist hedge funds and ensuring accountability across the investment chain. It provides examples of activist hedge funds pressuring companies to change boards, CEOs, payout policies, and undertake restructurings. It also discusses how pension funds can promote accountability through board representation, proxy voting, and ensuring managers act in beneficiaries' long-term interests rather than short-term gains. International guidance and national regulations aim to balance corporate and pension fund governance with workers' interests as employees and investors.
Workshop Hedge Funds and Sovereign Wealth Funds - Diaz FuentesSocial Europe
Country SWF Country SWF Assets Linaburg-Maduell
The document discusses sovereign wealth funds (SWFs), their evolution, composition, and potential consequences for workers in the European Union. It provides background on SWFs, defining them as special investment funds created by governments to hold foreign assets for long-term purposes. The presentation then profiles the major SWFs, dividing them into commodity SWFs, dominated by oil-exporting nations like UAE and Saudi Arabia, and non-commodity SWFs from Asian exporters like China and Singapore. Issues addressed include transparency, protectionism, and the impact of SWF investments on strategic sectors and privatization in the EU.
1) There is heterogeneity in private equity investment styles and outcomes that is often neglected in debates that portray private equity firms as either "angels or demons".
2) The impact of private equity investments on companies varies greatly depending on the type of company and private equity firm, with some focusing on growth, others on operational efficiencies, and others on turnarounds.
3) A looming refinancing crisis could occur as large amounts of debt taken on in private equity deals during the boom years from 2007-2009 come due for repayment.
1) IK Investment Partners is a leading European private equity firm that focuses on acquiring national champions and helping them grow into regional and pan-European market leaders through strategic focus, operational excellence, and expansion.
2) IK drives change in its portfolio companies through strong corporate governance and by focusing on industry restructuring, strategic goals, transferring best practices, and increasing capital efficiency.
3) IK's value creation approach includes enhancing R&D, marketing, production capacity, and pursuing geographical expansion organically and through acquisitions to help portfolio companies grow.
This document analyzes private equity funds, hedge funds, and sovereign wealth funds and their impact on corporate governance and labor outcomes. It discusses how these investment funds have grown dramatically in recent years and examines evidence from three studies on their effect on employment levels, work organization, and industrial relations in Europe. The document also provides overviews of the business models of private equity and hedge funds and discusses how their activities could potentially impact labor.
Acolyte Episodes review (TV series) The Acolyte. Learn about the influence of the program on the Star Wars world, as well as new characters and story twists.
Here is Gabe Whitley's response to my defamation lawsuit for him calling me a rapist and perjurer in court documents.
You have to read it to believe it, but after you read it, you won't believe it. And I included eight examples of defamatory statements/
El Puerto de Algeciras continúa un año más como el más eficiente del continente europeo y vuelve a situarse en el “top ten” mundial, según el informe The Container Port Performance Index 2023 (CPPI), elaborado por el Banco Mundial y la consultora S&P Global.
El informe CPPI utiliza dos enfoques metodológicos diferentes para calcular la clasificación del índice: uno administrativo o técnico y otro estadístico, basado en análisis factorial (FA). Según los autores, esta dualidad pretende asegurar una clasificación que refleje con precisión el rendimiento real del puerto, a la vez que sea estadísticamente sólida. En esta edición del informe CPPI 2023, se han empleado los mismos enfoques metodológicos y se ha aplicado un método de agregación de clasificaciones para combinar los resultados de ambos enfoques y obtener una clasificación agregada.
An astonishing, first-of-its-kind, report by the NYT assessing damage in Ukraine. Even if the war ends tomorrow, in many places there will be nothing to go back to.
Essential Tools for Modern PR Business .pptxPragencyuk
Discover the essential tools and strategies for modern PR business success. Learn how to craft compelling news releases, leverage press release sites and news wires, stay updated with PR news, and integrate effective PR practices to enhance your brand's visibility and credibility. Elevate your PR efforts with our comprehensive guide.
1. The Impact of Private Equity
Investors on their
Portfolio Companies
Mike Wright
Centre for Management Buyout Research
Nottingham University Business School
www.cmbor.org
2. Centre for Management Buy-out Research
Identified emergence of UK buy-out and private equity market
early 1980s
Organised first European buy-out conference in 1981
Centre for Management Buy-out Research (CMBOR)
Established in 1986 at Nottingham University Business School
To examine developments in UK & European buy-out markets in
comprehensive and independent manner
25 years of research into MBO/MBIs
Established world leading database of buy-outs
Currently >25,000 buy-outs in UK and Europe
Number of publications generated from database including:
UK Quarterly Review and European MBO Review
Academic Articles
3. Private Equity & Portfolio Companies
1600 200000
1400 180000
160000
1200
140000
1000 120000
m n
u br
€ illio
N me
800 100000
600 80000
60000
400
40000
200 20000
0 0
91
93
95
97
99
91
93
95
97
99
01
03
05
07
09
18
18
18
18
18
19
19
19
19
19
20
20
20
20
20
Number Value (€m)
From Folklore to Science
Summarize main themes from over 100 studies covering
US and Europe (Gilligan and Wright, 2010)
Performance, growth and their drivers
Role of Boards
Employment and employee relations
Asset sales, Longevity and distress
Source: CMBOR
4. Do Buyouts Improve Firm Performance?
Buy-outs improve profitability
Operating profitability of PE backed buy-outs greater than
for comparable non-buyouts by 4.5% over first three buy-
out years
Industry specialisation of private equity firm
important
Similar evidence from France & NL
BUT Public to Privates [PTPs]
Emerging US and UK evidence suggests accounting
returns on 1990s/2000s deals are not as great as for
1980s deals [Guo et al., 2009; Weir et al., 2008]
Source: CMBOR/Barclays
Private Equity/Deloitte
5. Do Buyouts Improve Firm Performance?
Buy-outs improve productivity
Total factor productivity (TFP) assessed
36,000 UK manufacturing establishments
4,877 experienced MBO between 1994-8
MBO establishments were approx. 2% less
productive than comparable plants before transfer
ownership
After MBO substantial productivity increase
[see also Davis et al., 2009 for US]
6. Does PE Affect Growth & Investment?
Refocusing & divestment greater than non-buyouts
Buy-outs improve entrepreneurial actions
New product development
Role of private equity firms
CAPEX & R&D mixed evidence
Divisional buyouts greater growth in sales, efficiency
& profits (Meuleman et al., 2009)
PE backed buyouts increase patent cites (Lerner et
al., 2008)
Strategic control systems enable growth
7. What Drives Performance Changes?
Management team shareholding has largest
impact on equity returns
After adjusting for management selecting an
attractive deal
Paying a lower price gives greater scope for
greater equity for management
Gains in LBOs > Gains in Leveraged
Recapitalizations
8. What is the role of PE and the Board?
Active PE firm monitoring important
Industry specialism & experience of deals done
Boards:
in PE buyouts active, non-bureaucratic boards
that help lead strategies to create value
in listed corporations accompany management’s
strategy and tend to focus on risk management
9. What is the role of PE boards in distress deals?
Listed corporation non-executive directors appear
generally less involved than boards in PE-backed
buyouts when restructuring becomes necessary
PE firm boards more rigorous and timely in distress
PE firms have an important role in restructuring
distressed portfolio firms and their strategies even
following debt/equity swaps
Listed corporations can face greater problems in
injecting new cash as they need to issue a formal
investment proposal
[Wilson, Wright, Cressy, 2010]
10. Does PE adversely affect employment & wages?
Years relative to year of deal
Variables t+1 t+2 t+3 t+4 t+5
MBO Employment -2.28% 2.96% 7.46% 21.43% 26.02%
MBI Employment -10.22% -9.70% -11.10% -3.35% -5.02%
Source: Wright et al. (2007)/CMBOR
Employment
Now many studies – employment effect contingent
Davis et al. (2008) employment grows more slowly & declines more rapidly in PE until
t+4; greenfield growth (US)
Boucly et al. (2009) 3 years following LBO, targets grow faster than peers by 13%
(France)
(Amess & Wright, 2007, 2010; Amess, Girma & Wright, 2008) (UK)
Majority of deals increase employment after initial fall
Employment growth in MBOs higher than non-LBOs but lower in MBIs
Buyouts whether PE or not no different employment change compared to matched firms
M&A has more negative effect than PE on employment
Wage growth in MBOs & MBIs, lower than non-LBOs
11. What is Impact of PE Buyouts on
Employee Relations?
Occupational pension schemes: increase but shift to defined
contribution schemes based on investment performance and
contributions open to new members
Increase in regular team briefings; Internal promotion as norm;
work organised around team working for the majority of the staff;
Formal grievance procedure; incentive pay schemes; non-
managerial training
Little change in union representation; 2/3 unions in favor neutral
towards buyout
More consultative committees, more influential; increased focus
on employment issues and especially on discussing company’s
future
Evidence of direct meetings between PE firms and employee
representatives
[Bacon et al., 2008a, b]
12. What is Impact of PE Buyouts in Different
Social Contexts on Employee Relations?
Differences in Portfolio company context
All contexts show increase in new high performance work
practices (HPWPs) after buyout; significant differences between
contexts disappear after buyout
Differences in PE firm origin
Buy-outs backed by Anglo-American firms are as likely to
introduce HPWPs (except for more financial incentives) as those
backed by non-Anglo-American PE firms, suggesting some
adaptation to local institutional contexts.
Time-scale
PE investment results in greater increases in HPWPs longer the
anticipated time to exit.
The impact of PE on HPWPs is affected more by length of the
investment relationship (heterogeneity of PE firm effect) than the
countries where PE is going to or is coming from
[Bacon et al., 2010a, b]
13. What is the Extent of Asset
Sales?
Substantial sell-offs mainly in few large & PTP deals
Partial Sale Year CE UK
No. Val. (€m) No. Val. (£m)
2000 36 420 78 4352
2001 30 51 94 8905
2002 32 2644 69 4837
2003 35 922 76 2974
2004 49 2938 73 8619
2005 54 2236 99 9145
2006 44 3786 72 6688
2007 49 6472 60 5379
2008 30 5654 44 495
Number & value of partial sales small share of deal volume and
value
14. Do PE Deals Involve Short
Term Flipping of Assets?
80
70
70
60
avge months to exit
60
50
50
40
40
£50‐500m
30 Over £500m
30
20 20
10 10
0 0
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: CMBOR
Overall increasing time to exit but heterogeneous longevity
(see also Stromberg, 2008)
Secondary buy-outs take longer to exit
PE-backed MBOs IPO sooner; those backed by active PE exit sooner & perform
better
15. Can PE provide a role in distressed firms?
Receiverships Increasing Source of Buy-outs
120 1200
100 1000
80 800
£ million
Number
60 600
40 400
20 200
0 0
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
Total Number Total Value (£m)
16. What is happening to Leverage &
Pricing in PE Buyouts?
60
50
Dramatic fall in senior 40
debt in financing 30
structures in 2008 20
over above £10m 10
deals 0
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Substantial increase Equity Mezzanine Debt Loan Note Other Finance
in senior debt pricing Type of Senior Debt 04 05 06 07 08
above LIBOR,
especially for less Tranche A 225 218 224 217 285
traditional layers Tranche B 275 250 262 265 338
Tranche C 327 283 308 303 396
Note: Data shows basis points above LIBOR
17. Does Higher Leverage Increase Likelihood of
Failure?
Failed vs non-failed buyouts
Failure rate affected by leverage, timing of deal & by default
probability on buyout (Wright et al., 1996)
PE buyout failure vs non-buyout failure (Wilson,
Wright & Altanlar, 2010)
7million firm years 1995-2009 including all UK companies
PE-backed buyouts have a significantly better coverage ratio (the ability
to pay interest on debt from profit and cash-flow) than non-private equity
backed businesses.
Leveraged firms [of any kind] more likely to fail
After taking into account leverage and other factors:
Private Equity backed buyouts post 2003 not significantly different in failure
likelihood than non-buyouts
Buyouts and buyins without private equity more likely to fail
18. What is the recovery rate in failed PE deals? ?
Secured creditors recover 62% average on bankruptcy;
30% sold as going concerns (Citron, Wright, 2008)
Recovery rates from failed PE buyouts (63%) more than
twice those in failed listed corporations (26-30%)
[Wilson,Wright & Cressy, 2010)
Dependent on proactive working between PE firms and
banks
Banks may soon seek to recover value through equity
sales, which may increase receiverships or sales to
distress funds.
19. Deal Types and Involvement of PE Firms
Managerial Managers’
PE Model/ Expertise Innovative Skills
Portfolio Mgt
Leverage & Constrained Conflicted Buy-
Financial Buy-outs outs
Monitoring [weak complements] [strong negative
substitutes]
Lower Leverage Operational Radical Buy-outs
& Close Value Buy-outs [strong positive
[weak substitutes] complements]
Adding
Need strategies to grow portfolio firms organically or build-up
Need to acquire expertise to add value & be sector focused
Select portfolio management with business skills who can
identify and deliver on innovative development strategies
Need to be involved in portfolio firms beyond initial ‘100 days’
20. Conclusions
Widespread evidence of positive impact of PE
Need for recalibration of traditional PE model rather than
fixing a broken one
Elements of best practice detectable worldwide but
believe have identified general challenges for a
significant swathe of less experienced PE firms
Potential danger with pressure upon PE funds to invest
Deals completed at entry prices posing major
challenges to the generation of target returns
Questioning of whether the lessons from the ending of
the golden age have indeed been learnt