Companies struggling with Sarbanes-Oxley compliance, shareholder activists, and turbulent credit markets often dream of some private equity firm swooping in and whisking them away from it all. Finding a buyer to do that, however, can be a harsher reality.
Foremost, private equity experts say companies looking to go private must put in a lot of hard work. The PE firms that usually spring to mind are the giants of the business: Kohlberg, Kravis and Roberts; the Blackstone Group; the Carlyle Group; and the like. But the vast majority of firms are smaller boutique shops. Hellman & Friedman, for instance, targets financial services companies, while United Max International concentrates on small- and mid-sized acquisitions. To reach those firms, companies must be ready to reach out to them first.
