Tag Archive: lbo

Jun 27

NY Times: Private Equity-Owned Companies Liquidate Less

In the court of public opinion, private equity firms are painted as hack n’ slashers who are likely to pull the plug on companies when the going gets tough. Hold the phone: that’s not true, according to a Moody’s report (reported by the New York Times) that studied one thousand struggling companies since 1988. In …

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Feb 23

What is Private Equity, Part 3

  Delving into the Private Equity minutia, here’s a little analysis of President Barack Obama’s recent tax proposal. The proposed cut of corporate taxes from 35% to 28% has drawn all the headlines, but more important are the details in the fine print. A great example is the proposed change to interest deductions. Currently, companies …

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Feb 07

What is Private Equity, Part 2

What Is Equity, and How Does It Grow? A post in my ongoing series on “Explaining Private Equity” (cross-posted from Google+)  A week ago, I posted a tidbit of private equity (PE) news. The short story: PE has been in the spotlight thanks to Presidential candidate Mitt Romney, and in the midst of the public …

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Jan 31

What is Private Equity? Part 1

Private equity (PE) deals, specifically leveraged buyouts (LBOs), have been in the news quite a bit recently. We can thank Mitt Romney’s presidential campaign: rivals like Newt Gingrich, as well as newshounds, have been scrutinizing his experience at Bain Capital, a PE firm. This has cast the PE industry in the (harsh) spotlight. For an …

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