Lower Middle Market Weekly Outlook

Coller Capital, a leading investor in the PE secondaries market, just released its biannual Private Equity Barometer. The report learned that “84% of PE investors will refuse re-investment requests from GPs whose last two funds they backed.” However, there are also indications that investments in first funds, primarily by family offices and insurance companies, will be on the rise. Might be time to make friends with a few family offices.

In other news, Medtronic makes a mega-acquisition and buys Covidien for $42.9 billion, moving its HQ to Ireland. The acquisition is another example of large US corporations seeking less onerous corporate tax rates.

Transactions:

• GoDaddy to tap public markets with IPO
• Celsion Corporation to acquire EGEN
• Exelis acquires Celestech
• Aon Affinity acquires National Flood Services
• Wiley buys SimBioSys
• Mad Style acquires Elly Preston Design
• Google picks up Skybox
• PPG Industries acquires Masterwork
• Helen of Troy to buy Healthy Directions
• Japan Tobacco acquires E-Lites
• RLJ Equity Partners to acquire EnviroVac Holdings

Events:

• Tuesday Webinar: Selling a Company – Value Drivers and Business Models
• Wednesday: Breakfast Roundtable in Boston
• Wednesday: DealFest Northeast
• Friday: Mid-South ACG Capital Connection

Opinions:

• Why this merger boom is different
• How Obama can increase taxes on carried interest
• Entrepreneurs need a better way to cash out
• Fundraising: Why success lies in premarketing
• Private equity firms can be liable for companies in their asset portfolio
• Private equity investors turn away from core funds for returns
• Where next for mergers in health?
• SEC official points to disclosure shortcomings by PE firms
• Apollo bullish on energy debt
• Does private equity deliver alpha?
• Private equity has more than it can spend
• Bank mergers expected to pick up
• M&A in financial services expected to expand over next year
• Hostile takeover bids for big firms across industries making a comeback

This week in history… Walt Disney Co. acquires 43% of Infoseek in exchange for ownership of Starwave and $70 million in cash (1998).