In the press
Targeted due diligence
As the business climate worsens, dealmakers are finding it increasingly challenging to meet expectations. Acquirers are still active in the mid-market, but they are proceeding with caution. In addition to focusing on innovative deal structures, it is now more important to bring that originality and creativity to their due diligence.
Date: 30 June 2008
Source: Financier Worldwide
"The Deal" article: Value creation at private equity funds starts with due diligence
In recent years, there were so many ways to make money in private equity. Value creation - the foundation upon which the LBO industry built its reputation - took a back-seat to creative financial engineering, allowing funds to realize returns faster and with fewer headaches. Relaxed credit standards and robust equity markets fueled this trend. Times have changed. Announced deals that made sense a few months ago are receiving renewed scrutiny as lenders now favor deals with prioritized strategic and operational improvements and a clear timetable for implementation. Today, value creation starts before the close. This Arthur D. Little article published in The Deal's Auction Block explains how top performing private equity funds increasingly employ operational and strategic due diligence to help identify value creation opportunities as early as possible.
Date: 01 November 2007
Source: Auction Block
Prism article
Private Equity: Strategies for creating value in a difficult market
Matthew Walsh, Nathan Shklyar and Petter Kilefors
The credit crunch and the subprime crisis have changed the landscape for private investors. But that doesn’t have to mean the end of the road for private equity. Good private equity firms have kept ...
Reports
Results 1-6 of 6
The Accidental Distressed Investor
As the credit and economic crisis deepens, many investors are suddenly in possession of distressed portfolios where few remedies exist to effect even partial recoveries. ADL takes a unique holistic approach of analyzing financials, cash flows, market outlook and immediate operational improvements needed to facilitate a restructuring or exit strategy that optimizes investment recovery.
Released: November 2008
To download please login or register as a new user ADL_The_Accidental_Distressed_Investor.pdf (.PDF, 627 kB)
Strategies to Turn an Economic Slump to Portfolio Companies' Advantage
In difficult economic times, large capital investments or extensive improvement projects may not be the right answer to an immediate need. Arthur D. Little has developed proven methodologies to help companies determine revenue and cost opportunities quickly and focus efforts on immediate value creation.
Released: September 2008
To download please login or register as a new user ADL_Manage_Portfolio_Companies.pdf (.PDF, 1.03 MB)
Demystifying the Credit Crunch
The term “credit crunch” has entered the popular lexicon. Barely a day passes when the media is not opining on the topic. Rarely does an economic event have such a profound ripple effect on institutions and individuals throughout the world.
Released: July 2008
To download please login or register as a new user ADL_Demystifying_the_Credit_Crunch.pdf (.PDF, 917 kB)
Private Equity Value Creation
The private equity industry has survived cyclical downturns, recessions and even double digit interest rates over the last three decades. As we enter a period of market uncertainty, Arthur D. Little's latest thought piece outlines the techniques used by successful private equity firms to ensure they survive a downturn by continuing to create value for investors and their portfolio companies.
Released: July 2008
To download please login or register as a new user ADL_Private_Equity_Value_Creation.pdf (.PDF, 549 kB)
Outlook and Opportunities in the Building and Construction Industry
It has been a challenging year for companies operating in the building and construction industry, but there are plenty of bright spots amid the gloom. That was the message some 250 industry players took away from the half day conference co-hosted by Arthur D. Little and Lincoln International in New York.
Released: June 2008
To download please login or register as a new user ADL_Construction.pdf (.PDF, 3.65 MB)
Middle Market Private Equity Challenge in an Economic Downturn
The credit crunch of the summer is not abating, and recent economic data indicates that the U.S. economy is very likely heading into a recession in 2008. The Middle Market Buyouts Symposium 2008 in New York on January 8 addressed the question “How can middle market private equity funds survive the economic downturn?” The consensus was that funds with care and patience in managing their investment portfolio and good management teams leading their portfolio companies should continue to do well, despite the difficult environment.
Released: March 2008
To download please login or register as a new user MMBS_2008_Report_3_28_01.pdf (.PDF, 1.7 MB)