This week we explore fact and fiction about private equity firms, global data on mergers and acquisitions, and why private equity companies chose to grow businesses through add-ons. Click on the headlines for the full articles.
Private Equity – Separating Fact from Fiction
Did you know that from 1995 to 2009, private capital-backed companies grew jobs by 81.5%,while all other companies in the U.S. economy grew jobs by 11.7%? Carl Doerksen examines data from two independent sources, PitchBook and NETS, that tells a different story than the stories you’ve probably heard.
The Middle Market Leads the Way in Mergers and Acquisitions
“Last month Mergermarket, a leading M&A analytical firm, released their first half 2012 analysis of deal making worldwide…in terms of deals closed, the middle market is a key source of deals not only in the U.S. but throughout the world.”
Private Equity – Growth via Add-Ons
“Business owners are often surprised to hear that equity firms focus their attention on smaller companies. Given the business media’s attention on billion-dollar mega deals, most entrepreneurs are under the mistaken impression that their companies are too small to be of interest to professional investors.
The reality is most equity firms that specialize in the lower middle-market do so because they have a growth strategy that focuses on an active “add-on” program…add-ons as a percentage of all deals closed by equity firms has steadily risen since the early part of this decade.”
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