Private equity buyouts - Sunday Times supplement

Private Equity hasn’t really featured very strongly in the Business Studies syllabus before, but may come more to the fore this year in the study of mergers and takeovers. A supplement in yesterday’s Sunday Times which examines ‘private equity backed firms with the fastest growing profits’ is worth getting hold of, as it gives some help on the role of private equity in the M&A market.

Articles in the supplement look at the ten biggest buyouts with the fastest growing profits, how acquisitions have driven profit growth for a third of the companies listed, as well as the role that ‘supportive lenders’ can play in making acquisitions in a downturn and the ‘flight to quality’ amongst buyers. There are also references to other aspects of the syllabus with 39 of the companies having boosted their profits by expanding overseas, and more of them relying on innovation through increased spending on R&D. Overall I think this will give some interesting additions to BUSS4 research.