The key differences between a private equity and a corporate bid
The key differences between a private equity and a corporate bid. John Corr, CIO at Aurora warns investors to be careful when assessing buying into a takeover situation where the bid is indicative from a Private Equity group. These deals do come off but quite often they fall over. People have to realise that Private Equity are very disciplined in their approach. They have a process... they have investors they have to answer to. They have to get funding lined up and they're very leveraged groups so they need to be very disciplined in their approach. Corr says they're quite happy to walk away... and clearly if they do the due diligence and walk away, there's a big signal that the company is not all it seems to be. Corr says this is very different from a corporate bid and explains why in this video:
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