The Private Equity Market Growth

This dynamic cache, however, concerns related to the evolution of the activity. One of the first consequences of market development of private equity buyout is the generalization of so-called secondary, tertiary and even quaternary view, consisting of leveraged acquisitions of companies already owned by one or more other funds. In 2006, the third type of LBO acquisitions was made through this resale between funds. This type of assembly raises serious concerns particularly related to the high level of debt in these successive operations, which raised fears of a bubble bursting. Indeed, the succession of holding recovery strengthens the total weight of debt in financing the acquisition. But a classic LBO average 70% funded by debt. We can now understand the anxieties expressed about the level of debt when several successive LBOs are made on the same entity.

On the other hand, in a context of rising interest rates, the sector should experience difficulties, but still far from an economic downturn. Indeed, this market should continue to grow in the coming years, particularly in France where many companies are to sell, LBO funds have gained credibility recognized, will no doubt key players in the market.

Finally, the IPO of a country, who is stated objective to identify a permanent source of capital and diversify the sources of fundraising, shows that the mutation is now facing the sector. The number of mega deals (i.e. acquisitions exceeding the one billion Euros) is more important, the private equity funds have no choice but to raise more funds. This requires, of course, on the one hand by increasing the resources collected from traditional capital providers. But also, for the sake of being less dependent on suppliers of capital and at the same time less sensitive to changes (particularly increased) interest rates on financial markets, the alternative "fund raising" on the stock market seems obvious. The money, usually so discrete and whose activity is based on the original financing of non hand, may now be found in the coast!

The Private Equity Market

Private Equity market has been experiencing four to five years an unprecedented dynamism. The figures for 2006 speak for themselves:

* 71% growth in business volume in 2006
* 71 billion of funds raised in 2006 or 22% over 2005
* 208 LBOs carried out in France in 2006, with two thirds of companies less than 100M € turnover,
* 1.5 million people now work for a company in France came under LBO, 9 to 10% of private sector employees,

The trend of 2007 is equally positive, as evidenced by recent events in the industry.


Private equity is one of the five main areas of activity of the market says private equity (intervention in the capital of unlisted companies generally to achieve horizon 3-10 years of strong capital gains), other activities are:

* Seed capital (or seed money) which represents the first stage since it is for investment projects still in its infancy, funded in order to develop a technology still in R & D to enable to go forward to a potential market,
* Venture Capital, also known as the Venture Capital (VC), which translates into a capital in innovative companies, being in the early stages of development and which have a high growth potential but also a very high risk,
* Capital reversal of investing in troubled companies to put in place a recovery plan.

The Private Equity, also known financing LBO (Leverage Buy-Out) groups for its funding and leveraged acquisitions of target companies, usually mature companies with strong growth potential. LBO funds - often associated with managers of the target - develop installation and operation of acquisition of the company with the objective to remain the capital of the latter ideally between 5 and 10 years while significantly improving the result of the business recovery. The solutions for output or funds are then variables: initial public offering; taken over by another fund, an industrial sale...

The Private Equity Market Governance

The event was followed by a steady evolution for twenty years, but no relation to the recent explosion. This momentum is the result of a combination of several positive key factors. The first of these is an abundance of liquidity in financial markets. Attracted by high yields (15-16% on average), liquidity providers (banks and insurance institutions, pension funds and private wealth) do not hesitate to fill the capital market allows investors to raise funds more increasingly important. Direct consequence, the number of LBOs has increased but more importantly, the number of very large transactions (over one billion Euros) also increased from 23 in 2006 in France. SMEs are no longer the only target of LBO financing transactions, large groups with a strong interest in the funds management, particularly in terms of activity. So after the frenzy of acquisitions recorded in recent years, these groups now intends to liquidate their related activities generate higher margins.

Then, the low cost of debt, due to low interest rates, gives montages leveraged a significant advantage over other types of acquisition financing transactions. They are based mainly on debt financing of target companies, the current environment when they are particularly favorable to more easily identify a margin between the cost of debt and the return on assets under management. However, this cannot alone suffice to explain the strong growth in activity. Private equity has above all recognition in the governance model in place in companies come under LBO financing. These companies are generally better managed and better valued, and even if some failures can be reported (ten more than 200 annual operations in France), we must recognize that the default rate of the sector is quite low and few are examples of clashes in the area of corporate governance.

Governance is indeed one of the key parameters of a company came under LBO financing. To repay debt must quickly generate cash flow. However, it is recognized that improving the economic value of a target company depends, in large part by the optimization model that will be applied. Therefore, LBO funds agree, from acquisition, to establish a mode of corporate governance more efficient and take the form of a greater focus, accountability of management (generally a shareholder as a result of the operation) and optimization of financial assets.

How To Prevent Identity Theft

Hello friends! Hope you all doing good Now, I am going to share you all information about the identity theft. As a matter of fact, I have enlightened about this very subject through by means of an article found in an online site at moneybusinessexpert.com. The Identity theft is the major threat that most of us may experience the pain of its fatal trap. This is easily avoidable, if you follow some Steps to Prevent Identity Theft and if we practice some simple precautions while using our credit cards. We must remain a follow up of our credit information on usual basis. Credit bureau makes available its client with credit report every year. So get benefit this flair and ensure our account on standard basis. On doing this, we can be clear in our mind that for fear that someone attempt to embezzle our identity, we would be capable to mark it at very near the beginning period. We have got also to save from harm our social security numbers. If you take some precaution then you may save your money and business. To stay behind out of harm's way, we have not to take documents on the subject of it contained by your folder. Memorizing the number will definitely solve this problem. You must as well make in no doubt that it is not written on some piece of paper which possibly will be simply available by others. Hope this information will remain useful for most of you! Thanks!!

The cross-selling and the customer loyalty

Faced with increased competition, banks and insurance companies must continually strengthen relationships with their customers. While 1 / 3 of the people have accounts in several banks, the challenge is to become the main bank or insurance client.

One way to be the leader is to increase the rate of multi-ownership: the interest is to provide diversified products to the customer to capture it while ensuring sufficient profitability during its life cycle. That is to increase revenue per customer (cheaper than acquiring new customers) by increasing the products held by clients and services sold.

The transformation of the sector as the penetration of bank assurance, the Finance assurance and banking-real estate agency promotes more cross-selling. Through tailor-made pricing, offers and services can be complementary and beneficial to customers who already own one or more products and thus meet all their needs (offer a discount on the purchase of a coupled auto and home insurance or credit coupled with car insurance, etc ...)

The additional sales are based on an understanding of the client, and updated as and when relationships are maintained. They depend on the life of the client's potential risk (credit risk) and value ("life time value"). The option to develop the relationship with customers most willing to deepen and extend this relationship is vital.

To stimulate the use and income of customers, relationship marketing must move towards a proactive logic by exploiting business opportunities with specific offers that will be triggered through key moments in the client's life: a real estate purchase, a change of vehicle a termination, etc.... These can be transmitted to the client, on the one hand, in "push" or direct marketing (e.g. on the web, it displays the customer area of the loan amount for which he is eligible, without having make any loan application), and second, in "pull" or sales rebound as enjoy a call from the client to provide a product or service selected by the system depending on its characteristics.

Customer knowledge will know what, how (on promotion campaign outgoing, etc.) and where to propose an offer. Thus, to develop, preserve and consolidate a position in a segment of customers, banks and insurance companies must be able to perform analytical work on the one hand, with qualitative studies to analyze customer needs and thus tailor products, services and associated discourses (e.g. the Net Promoter Score), and secondly, by building the individual marks for customer, quantitative studies, in:

* Potential and customer value ("life time value")
* Association (associated with mortgage insurance)
* Appetizing generic tenders / attrition (technical scoring)
* Segmentation behavioral, relational, or 360 ° C (type of clients)
* Financial risk (estimated probabilities of default, the outstanding event of default and loss associated)
* Textual analysis of the mail client
Ultimately, the challenge is to build a vision aggregate client level and thus part of a multi-logic products to promote adhesion of the client and / or from home to expand the panel of cross-selling .