Home       Access Capital       Acquire        Divest        Register         Contact

access Access PE

Private Equity Transaction Opportunities
  • Buyout (Platform)
  • Strategic add-on acquisition
  • Recapitalization
  • Growth equity

 

 

Not just any equity...

the RIGHT equity for your business

 

The explosion of private equity capital into the middle market over the past several years has created unprecedented opportunities for small and middle sized private companies. Possibly your company has been directly approached by private equity firms. Distinguishing between the literally hundreds -- if not thousands -- of private equity firms in the marketplace is virtually impossible for a private company. Many are highly experienced, discrete, patently fair, knowledgeable, and timely in making decisions. Others, though, may not be so. Highway Capital vets each private equity firm to ascertain they real interests and motivations.  We also assess their funding capacities, valuation and proposed transaction structures.  In this manner, we can best connect your business with the right equity!

 

Private equity refers to a type of investment aimed at gaining significant, or even complete, control of a company in the hopes of earning a high return. As the name implies, private equity funds invest in assets that either are not owned publicly or that are publicly owned but the private equity buyer plans to take private. Though the money used to fund these investments comes from private markets, private equity firms invest in both privately and publicly held companies. The private equity industry has evolved substantially over the past decade or so. The basic principle has remained constant: a group of investors buy out a company and use that company's earnings to pay themselves back. What has changed are the sheer numbers of recent private equity deals. In the past ten years, the record for the most expensive buyout has been broken and re-broken several times.

Private equity firms have been acquiring companies left and right, paying sometimes shockingly high premiums over these companies' market values. As a result, takeover targets are demanding exorbitant prices for their outstanding shares; with the massive buyouts that have made headlines around the world, companies now expect a certain premium over their current value. One example is Free-scale Semiconductor, who turned down a deal that paid a nearly 30% premium over its market value, holding out for a sweeter package, which it received. The sheer number of these high-priced deals that have occurred in recent years have led some to question whether this pace is sustainable in the long run. This could turn out to be a self-fulfilling prophecy; as concerns grow and people become less eager to invest in private equity deals, firms won't be able to raise the money to fund their acquisitions, essentially crippling the industry.

 

  • Blackstone Group (BX) is one of the first private equity firms that has gone public with a recent initial public offering in June 2007. China took a $3 billion stake before the IPO, which amounts to approximately 10% of the company's value. Blackstone manages about $800 billion in capital, ranking it as one of the top private equity firms by assets. Most market observers remain optimistic that Blackstone will deliver strong value to shareholders over time, given their excellent investment record since the company's inception.

 

  • KKR--a leading private equity firm originally known as Kohlberg, Kravis, Roberts--announced in early July, 2007, that it was planning to go public. KKR is famous for its involvement in high-profile buyouts, including the $45 billion buyout of TXU in February 2007. According to their filings with the SEC, the company said it would sell up to $1.3 billion in common equity units and use proceeds to expand the business.

 

 

 

 

 

The following businesses are currently in demand from within the Highway Capital network.

 

  • Business Model:  Hospice Providers

  • Revenue: $10MM - 200MM+

  • EBITDA: $2MM +

  • Geography:  National - Any US locations

  • Opportunity:  Platform and strategic add-on

 

  • Business Model:  Medical Management Company

  • Revenue: $10MM - 200MM+

  • EBITDA: $2MM +

  • Geography: National - Any US locations

  • Opportunity: Platform and strategic add-on

 

  • Business Model:  Direct Mail Order Distribution

  • Revenue: $10MM - 200MM+

  • EBITDA: $2MM +

  • Geography: National - Any US locations

  • Opportunity: Platform and strategic add-on

 

  • Business Model:  Biomedical Services

  • Revenue: $10MM - 200MM+

  • EBITDA: $2MM +

  • Geography: National - Any US locations

  • Opportunity: Platform and strategic add-on

 

  • Business Model:  Insurance Claims Processing Services

  • Revenue: $10MM - 200MM+

  • EBITDA: $2MM +

  • Geography: National - Any US locations

  • Opportunity: Platform and strategic add-on

 

  • Business Model:  Revenue Cycle Management Services

  • Revenue: $10MM - 200MM+

  • EBITDA: $2MM +

  • Geography: National - Any US locations

  • Opportunity: Platform and strategic add-on

 

  • Business Model:  Consumable Supplies

  • Revenue: $10MM - 200MM+

  • EBITDA: $2MM +

  • Geography: National - Any US locations

  • Opportunity: Platform and strategic add-on

 

  • Business Model:  Contract Research Organizations (CROs)

  • Revenue: $10MM - 200MM+

  • EBITDA: $2MM +

  • Geography: National - Any US locations

  • Opportunity: Platform and strategic add-on

 

  • Business Model:  Medical Device Manufacturers

  • Revenue: $10MM - 200MM+

  • EBITDA: $2MM +

  • Geography: National - Any US locations

  • Opportunity: Platform and strategic add-on

 

 

This is only a partial list of companies of interest at this time.  For more information, please contact us at 800-714-7560.