LBO firms turn to leveraged build-ups

Article Abstract:

Leveraged buyout companies are increasingly opting to build up smaller firms by using them as a platform for acquiring further companies to increase value and sell the company on or take it public. The concept is known as leveraged build-up. It is not yet known if investors gain a similar success on their returns as with leveraged buyouts, but the buyer can only gain from such a transaction by increasing the acquired company's size and cash flow. Venture capital company Golder Thoma & Cressey of Chicago, IL, is believed to be the first company to have initiated leveraged build-up activity around 15 years ago.

Management, Finance, Acquisitions and mergers, Leveraged buyouts

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Syndicated loans look cheap for acquirors

Article Abstract:

It is becoming increasingly common for businesses to fund acquisition schemes through syndicated loans, which are now available quickly at attractive rates. Pricing has become extremely competitive, causing some banks to consider whether it is still worth lending. Banks are now looking to increase sales of structured loans, for which they can charge higher rates than balance-sheet borrowing.

Prices and rates, Roll-over credits, Roll over credits

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Distressed firms look good

Article Abstract:

Strategic buyers are paying good prices for ailing companies according to Houlihan, Lokey, Howard & Zukin, an investment banking firm. The retail sector, including supermarkets, retail music and entertainment stores are more interested in mergers acquisitions as a recovery solution. Strategic buyers are seeing distressed companies as possible sources of growth at reasonable costs.

Purchasing, Business failures

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