Wednesday, September 1, 2010
Examining a private equity deal
Sometimes we run across an article that helps people understand how financing works. Here's a great example from today's Wall Street Journal from the paper's Deal Journal. It explains how Private Equity groups may make a killing by selling Burger King - and why.
It doesn't sound right, does it? Burger King - and even Arch-enemy McDonald's - are seeing lagging sales. The article notes that in a recession, fast food usually does well, thanks to consumers' desire to spend less. That's not been true lately.
If you want to learn more about how these deals work, read on for a terrific dissection.