Less reliant on debt than their big deal counterparts, and with the promise of forced sellers and genuine growth, the lower mid-market should be well positioned to weather the downturn. But inexperienced management, resilient pricing and companies vulnerable to economic distress mean there is trouble brewing for small cap investors too.
Tuesday, 25th November 2008
Law - Debt
Less taxing deals
“Debt pushdown” maximises the return to investors on acquisitions. Damien Crossley of Macfarlanes explains how it works for UK and foreign businesses.
Just in time
Proposed US reforms may help equity finance, as debt becomes harder to raise, say Kristian Wiggert (pictures) and Stephanie Wingader of Morrison & Foerster.
DAMIEN CROSSLEY
From 1 April, rules applying to shareholder debt may increase tax costs in private equity investments. Damien Crossley explains how best to deal with the changes.
LATEST ISSUE
Leader
No news is good news
Two weeks ago, Real Deals attempted to host a good news breakfast for the private equity industry. Even cynical journalists tire of unrelenting gloom. Improbable, but true.
Top Story
Small mercies
Less reliant on debt than their big deal counterparts, and with the promise of forced sellers and genuine growth, the lower mid-market should be well positioned to weather the downturn. But inexperienced management, resilient pricing and companies vulnerable to economic distress mean there is trouble brewing for small cap investors too.
Feature
Fair value for money
As the brakes are applied to the global economy, the way in which private equity firms value their portfolios is increasingly being called into question.
Comment
How do you solve a problem like sharia?
As Islamic financial products become increasingly popular, Kai Schneider of Latham & Watkins explains how to make a fund Sharia-compliant.
News Analysis
Amadeus’s twin symphonies
Amadeus has a proven eye for a winner, so its latest big investments have been causing a commotion in the venture community.
