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Private Equity in the Last Decade

According to TermSheet which, in turn, is quoting PitchBook Data, there’s some interesting statistics coming from the private equity world during the last decade ending 2010. That includes the following:

Although ~81% of the actuals DEAL QUANTITY originated from medium to mid-sized businesses, over 90% of the actual CAPITAL INVESTED went to large corporate deals of >= $1 billion.

EBITDA multiples peaked in 2008, which was the market peak for private equity. Money was pouring into PE firms and a number of them were chasing the same deals. That led to an egregious inflation in multiples, up to a high of 11.5x EBITDA!!! Wow! What happened to the 3-5x EBITDA that was the de rigeour at the beginning of the decade? Oh, what’s that? That’s the sound of the glass breaking as those low multiples were thrown out the window!

For more information and statistics, check out PitchBook Data’s study.

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About Tiffany C. Wright

Hi! I,Tiffany C. Wright, am the author of the ebook, "Help! I Need Money for My Business Now!!" and the book "Solving the Capital Equation: Financing Solutions for Small Businesses", available on Amazon. I am the president of Toca Family Business Services, a short-term & project-based interim management & strategic and financial advisory firm, located in Atlanta, Georgia. In the past five years I've helped small and medium companies restructure and obtain over $31 Million in financing and a similar amount in purchase orders and contracts. I have an MBA in Finance and Entrepreneurial Management from the Wharton School of Business at the University of Pennsylvania and a B.S. in Industrial and Systems Engineering from The Ohio State University. Personal: I enjoy investing. I am a prodigious reader of everything from business books, magazines, and newspapers to horror and popular fiction. I read 4-6 books per month. I also love to travel. I've been to 33 countries on 5 continents and lived in Japan for 2.5 years and aim for a foreign locale twice a year. I am also an athlete and run track on the Master's Circuit. The highlight was placing 7th in my age group in the 2007 World Master's Track and Field Championships in Italy.

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The Resourceful CEO, Tiffany C. Wright

the president of Toca Family Business Services, a strategic and financial advisory firm which provides short-term & project-based C-level management. She is the author of Solving the Financial Equation: Financing Solutions for Small Businesses, available on Amazon.

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