Mega-Buyout Plan B: Strip and Flip?
On Tuesday, I mused about the exit troubles facing mega-buyout firms: Isn’t an IPO the only viable exit option for a market leader that was taken private (Clear Channel, SunGard, HCA, etc.)? The only way to get a trade sale would be to run the company into the ground (buy the best company, make it second-best), while sponsor-to-sponsor deals are unlikely due to both high leverage loads on the original deal and the likelihood of an original consortium (i.e., fewer firms left to sell to). As some commenters noted, it seems that I forgot an obvious answer: The strip and flip.
12 March 2009•2 mins read
