Buyouts Magazine recently released 2005 figures for U.S. based buyout deals and funds raised:
- 845 leveraged buyouts of U.S. companies (or which included at least one U.S. sponsor) worth $197.8B. This compares with $137.4B in 2004 and $95B in 2003.
- $173.5 billion raised. This compares with just $42 billion in 2004 and $24 billion in 2003. Around 354 buyout/mezz firms raised funds.
Buyout firms have emerged as a credible alternative to strategic company exits and even to IPOs for startup companies. In my discussions with investment bankers and buyout firms the following exit metrics emerged for these different options:
|Nasdaq IPO||Strategic M&A||Financial M&A|
|Ebitda History||2 Quarters||None||Breakeven|
|Organization||Public CFO||Strong R&D||Will be restructured|
|Market||High growth||Doesn't matter||Fragmented|