The Science Of ...

Private equity (and mergers & acquisitions) in SA explained in simple terms

We’ve done quite well out of private equity… And private equity has done well out of us.

John Bellew, Bowmans Law

Private equity funds must get out; they’re not investors for life.

John Bellew, Bowmans Law

You have five years to invest… you can’t give the money back… The great thing about private equity is you have to do deals…

John Bellew, Bowmans Law

“Private equity” refers to investments that aren’t publicly traded on stock markets.

Investors are, typically, large institutions (e.g. Old Mutual Private Equity, Absa Capital, Brait Private Equity, etc.) or wealthy individuals.

Private equity firms often use debt financing to buy companies.

They then may attempt to restructure them in an attempt to resell for a higher price.

“Mergers and acquisitions (M&A)” refers to the combining of company ownership (i.e. two previously separately owned companies merge into one).

Legally speaking; a merger is the legal consolidation of two entities into one while an acquisition occurs when one entity takes ownership of another entity.

The Money Show’s Bruce Whitfield interviewed Bowmans Law Head of Private Equity John Bellew for his “The Science Of” feature.

Listen to the interview in the audio below (and/or scroll down for more quotes from it).

Private equity is long-term… you have to wait for your returns.

John Bellew, Bowmans Law

It’s a real trend north of the border.

John Bellew, Bowmans Law

Private equity is all about partnerships… the main partnership is with the management of the company you buy…

John Bellew, Bowmans Law

Competitive tension is important at an auction… to maximise value for the client…

John Bellew, Bowmans Law

There’s an opportunity in every crisis.

John Bellew, Bowmans Law

…international bidders have kind of disappeared…

John Bellew, Bowmans Law

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This article first appeared on 702 : Private equity (and mergers & acquisitions) in SA explained in simple terms


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