Tuesday, August 14, 2007

Going Private

Bell Canada is going private - just like Avaya, Alltel and Chrysler.

Thanks to the flow of money into private equity — in other words, outside of public markets like the New York Stock Exchange or NASDAQ — companies around the Southeast have found willing buyers. Firms that specialize in the niche have prospered, too, because of the relative ease of raising or borrowing money.[AJC]

You save millions when private due to the cost savings of regulatory compliance.

Meanwhile, all the move to private is draining loan / debt reserves and taking money out of the market. Not good long term. And most of it is a cash out for the insiders, a la Blackstone. Reminder: A market cap is not the same as the value of a company or an ROI.

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