All articles tagged with #leveraged buyouts
The article discusses concerns about a potential economic downturn reminiscent of 2007, driven by massive leveraged buyouts and risky debt, despite increased regulation and larger equity cushions in banks. Early signs include rising unemployment and falling consumer sentiment, with market experts warning of frothy valuations and potential corrections, though a full crisis like 2008 is not currently expected.
Private equity firms Bain Capital and Hellman & Friedman are in a bidding war to acquire DocuSign Inc, a provider of online signature services with a market value of about $12.5 billion. Blackstone Inc, another buyout firm, is no longer in contention. The outcome of the auction is expected in the coming weeks, and it's possible that the competing firms may partner to clinch a deal. DocuSign's shares rose 9.3% on the news, and the company reported a rise in quarterly adjusted earnings and revenue. This potential acquisition is set to be one of the biggest leveraged buyouts of 2024.
Private equity firms Francisco Partners and TPG have ended talks to acquire New Relic after they failed to secure enough debt financing and could not meet the business software company's valuation expectations. The demise of the deal negotiations underscores the challenges facing private equity firms seeking to put together leveraged buyouts. New Relic has been negotiating with potential acquirers since last year, and it's possible that deal talks resume some time in the future.