Private Equity: Transforming Public Stock to Create Value - Hardcover

by Harold Bierman (Author)

Praise for Private Equity

"Harold Bierman has blended an excellent mix of important principles with real case study examples for a better understanding on a rather sophisticated finance subject."
-Edward M. Dudley, Vice President & General Auditor, ABB Americas

"The role of private equity firms in financing buyouts as well as providing growth capital has expanded significantly in the past decade. In a clear, concise way, Harold Bierman provides a timely and astute analysis of the virtues of private equity as well as creative quantitative methodologies that are applicable to real-life transactions. This book should become essential reading for investors, intermediaries, financial advisors and the management of private, almost private, or soon-to-be private firms."
-James A. Rowan Jr., Managing Director, Investment Banking
Legg Mason Wood Walker, Inc.

"As the private equity asset class has grown to over $300 billion in the last three years, Bierman analyzes the fundamentals behind the investment decisions of this increasingly important sector. Once completing the book, you will understand the fundamental analytical framework underlying private equity investment."
-Peter Nolan, Partner, Leonard Green and Partners

"In looking at the private equity arena, Professor Bierman has brought together a diverse group of metrics and valuation formulas into a single text. The book provides a valuable combination of academic theory and real-life case studies. It provides many insights."
-Peter H. Vogel, Vice President, MeadWestvaco Corporation

Front Jacket

Publicly held companies create many advantages for all shareholders, from individual investors to upper-level managers within a company. But the different financial objectives of each shareholder can easily become a problem. The answer to this dilemma is private equity in the form of leveraged buyouts (LBOs), managerial buyouts (MBOs), or something in between. Private equity can take many different forms, but for the purpose of this book it refers to the common stock of a corporation where that common stock is held by a relatively few investors and is not traded on any of the conventional stock markets.

Private Equity: Transforming Public Stock to Create Value thoroughly explores private equity capital and its advantages--both financial and operational. Financial expert Harold Bierman Jr. takes an in-depth look at private equity and helps you gain a firm understanding of it from both a managerial and investment standpoint.

Through practical advice and detailed case studies of companies who have traveled this path--Metromedia, RJR Nabisco, Marietta Corp., and Owens Corning--this book arms you with a working knowledge of private equity. As an investor, you'll learn how to increase your rate of return on investments without increasing your risk. As a manager, you'll learn how to create private equity as well as supplement your compensation with a significant share of a firm's profits. Whatever position you're in, Private Equity can help you succeed. Highlighted topics include:

• Valuing target firms
• Structuring and selling the deal
• Changing dividend policies and capital structures
• Merchant banking
• Operations
• Partial LBOs

By discussing both theoretical and real-world issues, this comprehensive guide clearly demonstrates how transforming public stock into private equity can create tremendous value for everyone involved. Along with the valuable tips, tools, and formulas that fill these pages, numerous questions and problems are also presented at the end of each chapter to test your knowledge on the concepts presented.

Private equity is something you can use as a management tool or as an alternative investment to generate superior returns. Either way, this book can show you the best ways to utilize private equity. Expert advice and real-world examples will help you understand the enormous potential of private equity like never before.

Author Biography

HAROLD BIERMAN Jr. has been a member of the Cornell faculty since 1956, and has taught at Louisiana State University, the University of Michigan, and the University of Chicago. He was a recipient of the annual Dow Jones Award from the American Assembly of Collegiate Schools of Business for outstanding contributions to collegiate business education. In 1985 Bierman served as a scholar-in-residence at the investment banking firm of Prudential-Bache and in 1990 he served as a Senior Academic Fellow at the Financial Accounting Standards Board. His industrial experience includes consulting with Corning Corporation, Eastman Kodak, Emerson Electric Co., IBM, AT&T, Anheuser-Busch, and Xerox Corp. Bierman is the author of twenty-six books, including Corporate Financial Strategy and Decision Making to Increase Shareholder Value (Wiley) and more than 160 journal articles.