Deadline for SEC registration for larger private equity funds approaches
The Dodd-Frank Act requires private equity funds with more than $150 million in total assets under management to register with the SEC starting in July.
The law allows the SEC to defer implementation of this rule for one year. The lobbying has, of course, started in earnest. Here’s a comment from the Association for Corporate Growth [...]
It’s better to invest in your own company
Here’s a startling and bizarre summary of the situation for those wealthy individuals and institutions who are limited partners in private equity firms–you’ve lost a ton of money since 2002 and you may be running out of cash. Though the news so far in 2011 seems closer to breakeven, Pitchbook, the leading provider of information [...]
The true value of your business may not lie in the financials
We’ve regularly emphasized that owners and deal-makers can underestimate the value of intangibles. This error makes sense…many intangibles remain invisible on the balance sheets of small businesses.
“Let’s see. Right here on the balance sheet are all of your assets? Book value would be …” You may have had a conversation like this recently, and [...]
Berkery Noyes offers another source of M&A research in the information industries
BN has spruced up its web offering with MandASoft–which as with so many other promoters of the transaction market shows increasing activity. Private equity seems particularly active in this market segment; the strategic buyers are there, but perhaps holding their cards a bit.
One way to save money on purchase price allocation compliance?
According to a recent Duff & Phelps article, “Maximizing Value through the Integration of Transfer Pricing and Purchase Price Allocation,” valuation practitioners in a business combination scenario, should be aware of the hazards of preparing separate analyses – one that determines the fair value of assets and businesses for financial reporting purposes and one to [...]
Is the new management good enough to warrant a control premium?
In The Use and Application of Data for Control Premiums and Discounts, Gene Trevino (Valuation Associates Inc.) challenged a somewhat standard private equity belief. “The key question to ask,” says Trevino, “is can a buyer of a controlling interest do better at managing the company than the current owner? If you can’t do a better [...]
Pitchbook reports that PE to PE deals are dominating the market
Here’s an interesting factoid reported today by Pitchbook about the current market for buying and selling private firms–and, as we’ve all noticed, more and more of them are private equity firms buying from private equity firms:
Secondary transactions, or sales from one PE investor to another, have exploded this year. So far in 2010, there have been 121 [...]
Pepperdine survey: what rates of return do PE’s, VC’s, banks, and other financiers expect?
John K. Paglia and the Graziadio School of Business and Management at Pepperdine University is conducting their ongoing private cost of capital survey, a research survey pertaining to privately-held companies and the markets in which they raise capital. The survey “examines the behavior of senior lenders, asset based lenders, factors, mezzanine funds, private equity groups, angel investors, [...]
VC funders are still comatose
At least that’s what we hear from one anecdotal response posted at the Pepperdine Private Capital Markets Project. Andrew Eros, Managing Partner and COO of Ranger Precision, tells this story:
We went through 42 groups in 6 months and just signed a term sheet. We consider ourselves very fortunate based on the attitude of the [...]
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