As a follow up to my last thread, could someone from the sell-side briefly inform me of the principle reasons companies hire IBs to "auction" them off?
I don't mean just a divestiture, but actually selling the entire firm.
I definately understand the rationale behind an acquisition (from the buyer's perspective), but why would firms actively look to sell themselves, and many times, cease to exist?
Are these firms desperately looking for capital injections, but unable to raise debt and/or conduct an IPO?
Thanks for the help
Number one reason I encountered: Owners are looking for liquidity, aka to get paid.
~~~~~~~~~~~ CompBanker
Owners being PE shops or intitial investors, employees, and founders?
What are some other reasons?
Is the need for additional capital a legit reason or some strategic reason?
Owners being anybody -- financial sponsors, founders, anyone with an ownership stake in the company.
Some other reasons:
The list goes on. Pretty much any reason you can think of is a reason to sell a company. And as you may imagine, sometimes people sell their companies for the strangest reasons.
~~~~~~~~~~~ CompBanker
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