What I called “the wedge” in my post, The Wedge: M&A from $1B – $10B, is the natural hunting ground of private equity. And this is where we can expect the least activity during a crisis of credit. These buyers hate to put in 100% equity. They like a good measure of debt in the purchase, so this isn’t their time for Mergers and Acquisitions. And what is private equity doing, meanwhile? The short answer is: hoarding cash in unprecedented amounts. The last month has seen record accumulations of private equity funds. That money represents a potent resource for future activity, and we should be prepared to see a resurgence of private equity activity the moment the financial environment shifts in their favor.
Private Equity Is Quietly Waiting
- October 17, 2008
- By Capstone under M&A and External Growth
- acquisition strategy, acquisitions, Capstone, David Braun, External Growth, Integration, M&A, mergers, Mergers and Acquisitions
Capstone Strategic is the meeting point of passion and process in the field of mergers and acquisitions. Founded in 1995 by CEO David Braun, Capstone meets the unique demands of mid-market companies and their corporate growth initiatives. We help clients achieve their dreams through proactive strategic growth programs and successful acquisitions. Put simply, we help companies grow.