Private Equity’s Report Card for US M&A


December 19, 2013

This week Dealbook posted a list of notable US regional M&A transactions. Several of them were PE deals. Some received an A and some received an F. One of the deals highlighted was Thoma Bravo’s sale of Digital Insight to NCR for USD 1.65 billion, which it bought just 124 days earlier for USD 1.025 billion. It got an A.


The venture capitalists that backed Twitter received an A for running a clear and transparent IPO. Dealbook says it was the anti-Facebook IPO because Twitter did not get “tricky with pricing or numbers or try to push boundaries. Twitter simply sold shares to the public with great success.” This was another A.


European PE firm, Apax got not quite an F for doing something that is not yet clear will benefit its LPs. Apax bought Rue21, the fashion retailer, giving an exit to an earlier Apax fund. When Rue21 announced a sharp downturn in sales, the transaction was called into question. “The deal highlighted the conflicts when a private equity firm buys a company that it already holds shares in. It’s a warning for future private equity deals, says Dealbook.


Hight marks went to the founder of Dell for navigating a tough road to take his company private, but and MBO by the management at Dole received a low mark due to its pricing and legal controversies. (Image Source: Twitter)

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