February 2010
Intermediate to advanced
592 pages
19h 56m
English
Private Equity Impact on Corporations
The material in this chapter should be cross-referenced with Case Study 10, “Cerberus and the U.S. Auto Industry.”
The credit crisis that started in mid-2007 caused private equity acquisition activity to drop substantially when access to debt financing became limited. As a result, the private equity ownership model came under increasing scrutiny, and questions arose regarding whether this asset class could create sustainable value without “financial engineering.”
In response to this question, the authors of the World Economic Forum’s publication “The Economic Impact of Private Equity Report 2009” concluded that private equity-owned companies ...
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