Bust-Up Over LBO Bust

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Last week Jeff Matthews speculated that 2007 would be “2007 The Year of the Private-Equity Crisis.” Good deals are getting rarer, and private equiy shops are stretching to find value in a market saturated with buy-out dollars, according to Matthews.
Today the anonymous bloggette who writes the charming “Going Private” blog calls bullshit on this analysis. Her point: incentives and regulations are still pushing competent management out of public companies, while ignorance and insufficient information render public markets inefficient, creating opportunities to create value by going private. Even if you aren't as confident as her in the near-term history of the LBO biz, it's worth reading for her analysis of the history of the leveraged buy-outs.

Jeff Matthews Is Driving Through Burger King
[Going Private]

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