No smoke without fire

Huron Capital’s 6x return from tobacco testing company Labstat shows that new regulation can sometimes actually boost the bottom line, writes Graham Winfrey

For most private equity fund managers, regulation is normally considered a cost of doing business. 

In some cases, however, it can also help generate substantial value – as lower mid-market firm Huron Capital demonstrated in June, when it sold Labstat for a 6x return multiple.

The largest independent tobacco testing lab in the world, Labstat measures the amount of harmful constituents in tobacco smoke and smokeless tobacco.

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