Blue Horseshoe loves health care companies

By Kleinheider Posted on October 14, 2009 at 12:22 pm

Buyout firms prefer defensive sectors:

Almost two thirds of buyout firms are shifting to deals in defensive sectors such as health as they face the threat of losing control of their companies to banks, a survey by accountancy firm Grant Thornton has found.

Private equity firms are struggling with the debt they piled on their portfolio companies at the height of the boom, as a downturn in sales forces many firms into difficult discussions with the banks.

Healthcare and support services companies will be the most attractive to buyout firms as they search for deals that provide steady cash flow, Grant Thornton said on Monday.

“A growing number of private equity executives feel compelled to shift their focus to those sectors that are popular with the institutional investors that need to provide the finance for new acquisitions,” head of private equity, Mo Merali, said in a statement.

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Tags: buyouts, Grant Thornton LLP, investment management, private equity  

Private equity watches, waits

By Geert De Lombaerde Posted on July 1, 2009 at 11:36 am

Buyout funds and other private-equity investors continue to raise money, but they also continue to slow the pace of putting that cash to work. In the health care sector so important to Nashville, the money invested in the second quarter was down 75 percent from a year ago.

The decrease in private equity investment is not due to a lack of available capital, which remains at an all time high of $400 billion. PE investors continue to raise capital and currently have enough dry powder to more than support the combined deal activity of 2004, 2005 and 2006 with the use of moderate leverage.

Check out PitchBook’s full set of numbers here.

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Tags: buyouts, financial institutions, PitchBook Data Inc., private equity  

Caterpillar to shed costs with buyout

By Kleinheider Posted on February 11, 2009 at 12:37 pm

From the AP:

Caterpillar Inc. is offering voluntary early retirement packages to about 2,000 production workers as it expects lower demand for heavy equipment amid the global economic slowdown.

The maker of mining and construction machinery says the package is being offered to workers in Illinois, Colorado, Tennessee and Pennsylvania.

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Tags: buyouts, Caterpillar Inc., manufacturing  

Buyouts in Spring Hill

By Kleinheider Posted on February 3, 2009 at 8:21 pm

From WKRN:

Financially-strapped General Motors is expected to offer around 1,000 workers at their facility in Spring Hill a buyout.

The United Auto Workers said GM will offer employees $20,000 to leave the company and a $25,000 voucher for a new vehicle.

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Tags: automotive industry, buyouts, General Motors Corp., manufacturing, Spring Hill