Opportunism is key to exits success

Article Abstract:

Successful exits are important in determining returns from management buy-outs. They tend not to receive as much attention as the buy-out itself. Exits may be carried out in a number of ways, such as stock market flotations, or sales to others in the trade. Many exits have been successful in the two years to 1996. Companies should still be able to carry out successful exist in the 12 months from Mar 1996, so long as they have a good track record and operate in a market which is expanding.

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Playing God to the market

Article Abstract:

Overpaying in management buy-outs may occur for a number of reasons such as a large amount of cash available for venture capitalists, and a rise in corporate values due to takeover competition. Trade buyers may pay high prices if synergies are to be achieved. Clustering may also be a means of developing a new vehicle. Demerger transactions may result in parts being valued at greater than the group as a whole. The market conditions favor buy-out teams in 1996.

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White knights set to ride high

Article Abstract:

Many smaller companies in the United Kingdom are undervalued and there has been a move toward delisting smaller firms which stockholders do not favor. Buyout houses need information on companies if they are to invest. Companies may seek to delist in order to avoid hostile takeovers, and this trend is likely to increase. White knight bids can eliminate certain problems associated with corporate moves from being publicly quoted toward being private.

Mergers & Acquisitions

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