Initial public offerings for LinkedIn and Dunkin Donuts, takeovers of Mead Johnson Nutrition and Harley-Davidson, and a Cold Stone Creamery sale are among the 10 deals predicted by columnists from Dow Jones Investment Banker for 2010.
The latest reorganization could’ve been torn from the playbook of Gordon “Greed is Good” Gekko: A troika of private equity firms, lead by the likes of Bain Capital and Goldman Sachs Funds, orchestrated a controversial public offering in May 2006 — but not before pocketing more than $700 million in fees and dividends. Financing this avarice was almost $1 billion in debt heaped on the balance sheet inherited by the new shareholders (and the equity funds still own a 32 percent stake, at an essential cost basis of pennies per share).
Mr. Rubenstein, the Carlyle Group founder, told Bloomberg Television in an interview on Thursday that many of the elements are in place for a recovery in the leveraged buyout industry. But the big deals from the golden age remain highly unlikely: “If you want to do a $10 or a $20 billion buyout, I think that’s unrealistic in this day and age right now.” DDIFO Members may watch the video.
Tim McLaughlin of the Boston Business Journal writes that about eight months before Lehman Brothers collapsed in the fall of 2008, Danvers Bancorp Inc. reeled in about $175 million in capital from its conversion to a publicly traded bank from a mutual.
With tax season upon us, Dunkin’ Donuts franchise owners might be interested to know about noteworthy tax-saving strategies. Enter: cost segregation which, depending largely on the scope of a franchisee’s holdings and investments, can yield upwards of $1 million in additional tax deductions. DDIFO Members Only Restricted Content.
A unit of Citizens Financial Group recently reported a full-year net loss of $600.4 million for 2009 after charging off more than $2 billion in bad loans. RBS Citizens, the No. 2 retail bank in Massachusetts, disclosed the loss in a financial report filed with the Federal Deposit Insurance Corp. The bank was not available to comment for this story
Suzanne McGee writes at Portfolio.com that the financial crisis has changed the way people think about risk. At the end of every three-month period, data providers crunch through a mountain of information about stock and bond deals, M&A activity, and all kinds of other financing to produce the much-scrutinized “league tables.” And the final weeks of December were no exception, as Jody Drulard and his team at Dealogic LLC scrambled to put together a summary of Wall Street’s dealmaking for the watershed year of 2009. But instead of looking at what Wall Street firms had done in 2009 (notably, a big rebound in debt issuance that earned $18.2 billion in fees for investment banks and banks globally), Drulard found himself pondering what wasn’t showing up on the league tables he was compiling. Specifically, that missing $3 trillion or so of capital that Wall Street had raised every year for most of the first decade of the 21st century.