28 Oct 2015Secondary Buyouts: How They Create Value
Private Equity firms generally deploy a number of strategies to maximize the value creation of their investments. Profitability of any investment depends upon realization of a successful exit strategy. Traditionally, private equity firms resort to three exit options namely, a Corporate Acquisition, IPO and Secondary Buyouts. Earlier IPO’s or corporate acquisitions were considered as successful exits as these tend to maximize their returns, however, of lately secondary buyouts have gained importance as a preferred exit route.