Diminishing returns threaten take-privates

Falling return expectations could limit the number of attempted public-to-private deals in 2007, according to a new report.

The number of successful take-private deals is unlikely to increase significantly in 2007, as buyout firms struggle to meet their return expectations from the targets currently available, according to a new research note.

The note, from the credit strategy team at Merrill Lynch, suggests that deals like the mooted buyout of Sainsbury’s may struggle to meet return expectations.

Share this