Why do you think more companies do not recapitalize their balance sheets by adding more debt in order to replicate the returns achieved by private equity fund portfolio companies? Do investment banks ever recommend a leveraged recapitalization of public companies? Why or why not?
Answer to relevant QuestionsWhat types of U.S. securities offerings do not need to be registered with the SEC?Since private equity firms seek to minimize their equity contribution in a deal in order to maximize returns, the amount of debt used to finance transactions should (wishing away financial risk) be the maximum amount of ...What are some measurable benefits from private equity ownership of corporations?What is a benefit of having a financial buyer versus a strategic buyer in an M&A transaction??What is a possible negative consequence of investing during private equity boom cycles?
Post your question