IMF sounds private equity alarm
IMF warns that mushrooming private equity activity risks dealmaker meltdown
IMF warns that mushrooming private equity activity risks dealmaker meltdown
The International Monetary
Fund has warned that the current level of private equity deal
activity is so extreme that there are risks of matching the worst excesses of
earlier
M
&A booms .
The IMF warned that insatiable investor demand for private equity investments
has resulted in over-inflated deal valuations, and left companies financially
vulnerable and saddled with too much debt.
According to
The Times
, the IMF also warned that private equity players are also
exploiting demand for a share in their deals in order to obtain weaker financing
conditions from their investors.
Investors, meanwhile, may be failing to properly assess private equity deals
as thoroughly as they should in the rush to obtain stakes in buy-out deals.
‘The recent wave of M&A is exhibiting some worrying symptoms of the past
and has introduced some new risks,’ the IMF said in a report.
Further reading:
Rake called up to aid private equity image push
Private equity’s silent partners
Private equity chiefs face up to tax review
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceThis regulatory update aims to simplify the reporting process, reduce administrative burdens, increase accuracy, and provide real-time reporting capab...
View articleTechnology could enable this by allowing teams to 'speak the same language' Read More...
View articleBegbies Traynor had a strong first half to its year, buoyed by increased revenue and a number of acquisitions Read More...
View articleRicky Shankar, Chairman of Clear Factor, explains how his own experience with banks led to the creation of Clear Factor - a decentralised global invoi...
View articleLooking at spending patterns of more than 1000 Spendesk users in 35 European countries, making 800,000 transactions totalling over €120million, the ‘S...
View articleWith Accounts Payable fraud on the rise Ian Smith, Finance Director and GM at Invu, looks at whether technology can save businesses from a brewing cri...
View articleBoris Johnson has proposed to raise the 40p tax from £50,000 to £80,000 in his bid to become the next Tory leader – and the accountancy industry...
View articleNew research quantifies the extent of Companies House inaccuracy as the ICAEW urges the Treasury and BEIS to shore up defences Read More...
View article