Click to login and read the full article.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600
Abstract
Private equity firms market to limited partners by claiming to be able to earn returns on equity of the order of 18% for their investors. Because this rate of return is typically higher than the cost of equity capital for target firms, a question arises as to how private equity firms can pay competitive prices for acquisitions. The author examines that question from a variety of perspectives, and identifies the conditions under which private equity firms are likely to be able to pay fair market value as well as the conditions under which potential targets should say no.
- © 2018 Pageant Media Ltd
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600