Private Equity: Transforming Public Stock Into Private Equity to Create Value [Hardcover]

Harold Bierman Jr. (Author)

Book Description

ISBN-10: 0471392928 | ISBN-13: 978-0471392927 | Publication Date: January 10, 2003 | Edition: 1

Praise for Private Equity

"Harold Bierman has blended an excellent mix of important principles with real case study examples for a better understanding on a rather sophisticated finance subject."
-Edward M. Dudley, Vice President & General Auditor, ABB Americas

"The role of private equity firms in financing buyouts as well as providing growth capital has expanded significantly in the past decade. In a clear, concise way, Harold Bierman provides a timely and astute analysis of the virtues of private equity as well as creative quantitative methodologies that are applicable to real-life transactions. This book should become essential reading for investors, intermediaries, financial advisors and the management of private, almost private, or soon-to-be private firms."
-James A. Rowan Jr., Managing Director, Investment Banking
Legg Mason Wood Walker, Inc.

"As the private equity asset class has grown to over $300 billion in the last three years, Bierman analyzes the fundamentals behind the investment decisions of this increasingly important sector. Once completing the book, you will understand the fundamental analytical framework underlying private equity investment."
-Peter Nolan, Partner, Leonard Green and Partners

"In looking at the private equity arena, Professor Bierman has brought together a diverse group of metrics and valuation formulas into a single text. The book provides a valuable combination of academic theory and real-life case studies. It provides many insights."
-Peter H. Vogel, Vice President, MeadWestvaco Corporation

Editorial Reviews

From the Inside Flap

Publicly held companies create many advantages for all shareholders, from individual investors to upper-level managers within a company. But the different financial objectives of each shareholder can easily become a problem. The answer to this dilemma is private equity in the form of leveraged buyouts (LBOs), managerial buyouts (MBOs), or something in between. Private equity can take many different forms, but for the purpose of this book it refers to the common stock of a corporation where that common stock is held by a relatively few investors and is not traded on any of the conventional stock markets.

Private Equity: Transforming Public Stock to Create Value thoroughly explores private equity capital and its advantages–both financial and operational. Financial expert Harold Bierman Jr. takes an in-depth look at private equity and helps you gain a firm understanding of it from both a managerial and investment standpoint.

Through practical advice and detailed case studies of companies who have traveled this path–Metromedia, RJR Nabisco, Marietta Corp., and Owens Corning–this book arms you with a working knowledge of private equity. As an investor, you’ll learn how to increase your rate of return on investments without increasing your risk. As a manager, you’ll learn how to create private equity as well as supplement your compensation with a significant share of a firm’s profits. Whatever position you’re in, Private Equity can help you succeed. Highlighted topics include:

• Valuing target firms
• Structuring and selling the deal
• Changing dividend policies and capital structures
• Merchant banking
• Operations
• Partial LBOs

By discussing both theoretical and real-world issues, this comprehensive guide clearly demonstrates how transforming public stock into private equity can create tremendous value for everyone involved. Along with the valuable tips, tools, and formulas that fill these pages, numerous questions and problems are also presented at the end of each chapter to test your knowledge on the concepts presented.

Private equity is something you can use as a management tool or as an alternative investment to generate superior returns. Either way, this book can show you the best ways to utilize private equity. Expert advice and real-world examples will help you understand the enormous potential of private equity like never before.

From the Back Cover

Praise for Private Equity

"Harold Bierman has blended an excellent mix of important principles with real case study examples for a better understanding on a rather sophisticated finance subject."
–Edward M. Dudley, Vice President & General Auditor, ABB Americas

"The role of private equity firms in financing buyouts as well as providing growth capital has expanded significantly in the past decade. In a clear, concise way, Harold Bierman provides a timely and astute analysis of the virtues of private equity as well as creative quantitative methodologies that are applicable to real-life transactions. This book should become essential reading for investors, intermediaries, financial advisors and the management of private, almost private, or soon-to-be private firms."
–James A. Rowan Jr., Managing Director, Investment Banking
Legg Mason Wood Walker, Inc.

"As the private equity asset class has grown to over $300 billion in the last three years, Bierman analyzes the fundamentals behind the investment decisions of this increasingly important sector. Once completing the book, you will understand the fundamental analytical framework underlying private equity investment."
–Peter Nolan, Partner, Leonard Green and Partners

"In looking at the private equity arena, Professor Bierman has brought together a diverse group of metrics and valuation formulas into a single text. The book provides a valuable combination of academic theory and real-life case studies. It provides many insights."
–Peter H. Vogel, Vice President, MeadWestvaco Corporation

See all Editorial Reviews

Product Details

• Hardcover: 256 pages
• Publisher: Wiley; 1 edition (January 10, 2003)
• Language: English
• ISBN-10: 0471392928
• ISBN-13: 978-0471392927
• Product Dimensions: 9.7 x 6.2 x 0.8 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Average Customer Review: 1.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #1,969,224 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

51 of 54 people found the following review helpful:

1.0 out of 5 stars Unhelpful book on private equity, February 21, 2005

By 

Rabindran Abraham (NY, NY USA) - See all my reviews
(REAL NAME)   

This review is from: Private Equity: Transforming Public Stock Into Private Equity to Create Value (Hardcover)

I bought this book hoping that it would, through a good mix of principles and case studies, help me understand the private equity industry betther. The book does not live up to these expectations.

First, it is written badly, and seems more a series of preliminary notes than a well thought out book. Discussions are short and often repetitive. The analytics are extremely simplistic and are essentially a regurgitation of elementary finance theory (things like valuing a company with a fixed dividend growth rate). There is very little in them that is specific to private equity.

The book gives the reader absolutely no sense of what makes private equity different from other forms of finance, or the history and prospects of the industry. A quick review of the bibliography suggests that most of what the author has to say is already outdated and irrelevant.

I haven't the heart to sells my (wothless) copy: I wouldn't want someone else to waste his or her time with it (let alone his/her money)! A much better book is Venture Capital & Private Equity by Lerner and Hardymon.