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Quote of the Week: The Second Bite

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March 1, 2012

“I tell my clients a lot, when they’re looking doing a deal with a private equity fund, don’t look at the valuation of the first offer. Look at the guy and say, “Who is going to be the one that’s going to really maximize the value of this company in the long run?” That’s the bite of the apple you really want. The first bite is nice, but that second bite, that could be generational wealth changing events.”

 

Who said it: Gary Levy Partner , J.H. Cohn

 

In Context: In a video interview Gary Levy spoke with Privcap, a new media company focused on PE, spoke in a QandA session about how his company connects middle-market clients with potential private equity partners. The quote refers to the “second bite” of the apple, or the ability of the PE managers to add value to a company that it invests, which is, in Levy’s view, what to really look for when selecting a PE firm if a company owner wishes to maximize the growth and wealth his company can return. The “first bite” is the first offer valuation. (J.H. Cohn is the sponsor of the Privcap series “Crunch Time For the Middle-Market.”)

 

Where we found it: Privcap

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