Here’s a very good interview of Dominick DeChiara, head of the private equity group at Nixon Peabody LLP, running through the current state of seller’s expectations. Covers everything from lower prices, to current deal multiples, to financing outs, as well as the trend for more flexible material adverse change clauses. Quite comprehensive for under four minutes!
Here’s Crystal Capital’s Edward Siskin and The Heico Companies’ Michael Heisley saying that 90% of private equity fund managers are “clueless” as to how to implement turnaround plans in distressed investments, and how many of these same managers are also not familiar with bankruptcy codes:
And they’re right! Too many firms recruited number crunchers and analysts, and not enough people with operational and strategic backgrounds. Competency in financial engineering won’t cut it these days.
Here are a couple of videos from The Deal’s M&A Outlook 2009 Conference which took place this past week in New York. The first clip features John D. Howard of Irving Place Capital on middle market dealmaking: