Dun & Bradstreet crystallizes buyout-shop woes 24 Mar 2025 The business-data cruncher, whose roots go back to 1841, is being bought again, this time by private equity firm Clearlake. At $8 bln, the price is about the same as its pre-IPO sale five years ago. A lower multiple and knottier funding typify the stress in such deals nowadays.
Buyout barons’ evergreen rush is risky money tree 12 Feb 2025 Private-market firms from KKR to Blackstone are creating funds with no set payback date to target mom-and-pop investors. Letting clients withdraw cash at will jars with the nature of illiquid assets. The race to create a $13 trln market may see returns fall.
Tech’s also-rans are ripe for the plucking 30 Aug 2024 Buyout barons are back to spending their $2.6 trln of dry powder, scooping up software companies like PowerSchool and Squarespace. With regulators restraining Big Tech and public market investors increasingly discerning, beleaguered sellers might be ready to take the money.
Mattel buyout would be fun but dangerous plaything 23 Jul 2024 Despite Barbie’s star power, the $7 bln toymaker’s sinking valuation has attracted suitor L Catterton. A deal can work but looks big enough to be a choking hazard for the LVMH-backed investment firm. Higher tariffs on Chinese suppliers also would make the financial game riskier.
Match is a relationship better enjoyed in private 17 Jul 2024 For public investors, the owner of dating app Tinder’s profile has a red flag: slow growth. With shares down 80% since 2021, Starboard is the latest rabble-rouser pushing fixes. Strong cash flow and a cheaper valuation make the $9 bln company a better pairing for a buyout shop.
Elliott nudge may lead to slow-motion SoftBank LBO 5 Jun 2024 The US activist wants the $88 bln Japanese tech investor to boost its share price via a $15 bln buyback. That could raise SoftBank boss Masayoshi Son’s stake from a third to 40% and in time spur him to take the group private. The risk for Elliott is that he binges on AI instead.
Covid buyout drama will unfold in tense third act 24 May 2024 Thoma Bravo’s 2020 takeover of software developer Instructure in many ways encapsulates the tech deal boom. A quick IPO capitalized on the era’s exuberance before debt and a slowdown took hold. The latest sale effort sets the stage for other uplifting or tragic denouements.
Timid post-Covid tech cleanup begins with mini-LBO 13 May 2024 Website builder Squarespace is going private, the latest deal for a tech firm in a post-pandemic funk. A price of 20 times EBITDA looks more modest when accounting for investors sticking around and improving cash flow. Opportunistic dealmakers aren’t yet swinging for the fences.
Narrow exits will fatten fattest buyout fat cats 10 Jan 2024 Some private equity shops may be forced to start accepting discounted valuations on a record $2.8 trln of unsold investments. Others like KKR and EQT are best positioned to hold out. This disparity should help 25 firms, with 22% of the industry’s firepower, pad their dominance.
European payments LBO would be rewarding but messy 18 Oct 2023 CVC may bid for Milan-listed Nexi, Bloomberg reported. A $16 bln buyout could earn handsome returns, even if the group just performs as analysts expect. But Nexi’s private-equity shareholders like Hellman & Friedman know this, forcing buyers to either cough up or bring them in.
Apollo may get noodle LBO thrown back in its face 12 Oct 2023 The buyout group could gobble up the UK-listed owner of the Wagamama chain for $862 mln. It looks like a good deal for the acquirer. Apollo’s decision to drop its John Wood takeover this year shows it’s no soft touch, but investors can still hold out for a better dish.
Bain’s Chindata buyout saga verges on absurd 13 Jul 2023 The US investment firm last month offered $2.9 bln for the Chinese data centre operator it already controls after potential rival bids yielded nothing. Now a state-backed group has bested Bain’s offer by 15%, yet is being ignored. It’s an odd way to get the best deal all round.
Private equity gears up for a deal fest Down Under 11 Jul 2023 Blackstone, EQT, CVC and peers are shifting resources to Australia, partly due to geopolitical tension. The country’s stumbling economy will also leave property, consumer and other firms ripe for buyouts. That means M&A battles – once inflation, rates and debt markets settle.
Buyout barons make bloody return in Europe 3 May 2023 Silver Lake and Bain are facing off to buy German company Software AG amid a revival in takeovers. Cheap stock prices mean deals can work despite debt constraints. But a limited pool of targets will make it hard to deploy $2 trln of dry powder, and stay disciplined.
Telecom Italia breakup can please all its masters 15 Feb 2023 The sickly telco needs to cut its 25.4 bln euro debt pile. Selling its fixed-line grid to KKR offers a fix, provided the government gets a stake in the strategic asset. For major investor Vivendi, the upside would be a chance to sell Telecom Italia’s revamped service business.
KKR can limit the pain of Elliott’s telco blitz 13 Feb 2023 The activist is disrupting the buyout group’s bid for German phone masts firm Vantage Towers. With a 5.6% stake, Paul Singer’s fund is expected to block the delisting until it gets a big payout. But unlike previous Elliott campaigns, KKR has various ways to insulate itself.
Nordic bidding war is tricky model for LBO revival 25 Jan 2023 Bain Capital and Triton are locked in a battle for $1.2 bln Finnish maintenance firm Caverion. High debt costs make buyouts challenging, but the target has a cheap valuation, a simple turnaround story and green appeal. That combination may not be easy to replicate.
EQT embodies private markets’ two big problems 18 Jan 2023 Shares in the $28 bln buyout group fell 6% after CEO Christian Sinding flagged a fundraising slowdown. Another issue is that, like its rivals, the Swedish firm spent big when asset prices were high. Its relatively steady fund valuations may not yet reflect all the future pain.
Buyout investors are heading for a cash crunch 23 Aug 2022 The $2 trln industry’s backers, such as pension funds, often rely on past profits to meet calls for fresh capital from KKR and others. But that doesn’t work in a slump. Since alternative cash-raising methods are costly, private equity’s appeal as an asset class may take a hit.
KKR-led hospital deal calls for surgical precision 5 Jul 2022 To make a $14 bln buyout of Ramsay Health Care work may involve amputating parts in Europe and a tricky sale and leaseback operation. And since due diligence started back in April, higher interest rates and a new Australian government further complicate the delicate procedure.