Private Equity Newsletter - Volume II, Issue II
7/21/2009
In this issue of the Private Equity Newsletter, you will read about:
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Due Diligence for Add-On Acquisitions
In today’s economy, where financing opportunities are all but gone, and organic growth is difficult to achieve, Private Equity Groups (PEGs) have focused their efforts on add-on acquisitions instead of investing in new platform acquisitions. Although add-on acquisitions are typically smaller in size, they complement the original platform investment in that the synergies of the combined entity create a more efficient whole, both operationally and financially. Typically, add-ons are identified shortly after the initial platform company is acquired and tend to be small-to-middle market, privately held companies.
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Are Your Portfolio Companies Taking Advantage of Cost Segregation Studies?
In light of the current recession, companies and investors are looking for every opportunity to maximize return by cutting costs. One of the best ways to maximize after-tax returns from investments in real estate is by taking advantage of Cost Segregation Studies (CSS).
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Service Spotlight: Improving Bottom-Line Performance for Private Equity Funds Insurance coverage is a perennial cost of doing business. Many private equity portfolio companies are in search of the right coverage at the right price for the full range of business-related risks, but many firms may be overpaying for their insurance coverage. Premium overpayments may occur because portfolio companies are at a significant disadvantage when dealing with brokers and insurers. Depending on the size of the portfolio, as well as the number of funds a company has, these excess premiums can add up, reducing earnings and a fund’s total return.
To read the newsletter in its entirety, click here.