Progress-Driven Entrepreneurs, Private Equity Finance and Regulatory Issues

by Z. Mikdashi

Overview

Durable business performance is crucially dependent on a stakeholders' strategy and accessible entrepreneurial finance available within macro-economic and regulatory environments. These reflections on issues and policies of progress are mainly concerned with enabling entrepreneurial risk-takers to operate within an optimal business environment.

Product Details

ISBN-13:	9780230514980
Publisher:	Palgrave Macmillan UK
Publication date:	12/18/2009
Edition description:	2010
Pages:	195
Product dimensions:	5.50(w) x 8.60(h) x 0.70(d)

About the Author

BENOIT LELEUX is Stephen Schmidheiny Professor of Entrepreneurship and Finance at IMD, Switzerland, where he was previously Director of the MBA Program and Director of Research and Development. He specialises in venture financing and management, combining expertise in entrepreneurship, venture capital, private equity and growth management. SAMUEL L. HAYES holds the Jacob H. Schiff Chair in Investment Banking Emeritus, at the Harvard Business School, USA. Professor Hayes has consulted for a number of corporations, financial institutions, and government agencies, including the Justice Department, the Treasury Department, the Federal Trade Commission, and the Securities and Exchange Commission. He currently serves on the boards of Telect, Inc., and Yakama, Inc. and is on the investment advisory boards of Edward Jones and Arcapita, Inc.

Table of Contents

List of Exhibits and Boxes vii

Foreword Samuel L. Hayes viii

Preface xii

Acknowledgements xiii

Notes on the Contributors xiv

Part 1 Entrepreneurs Overcoming Challenges

1 Case Studies 3

Case A Sustainable energy technologies 5

Case B Lending to the enterprising poor 16

Case C Migration and community revitalization 27

Interpreting the quintessence of entrepreneurship 35

Size of business, entrepreneurship and growth 40

Defining benefits 46

Entrepreneurs and market dynamics 48

Part 2 Financiers as Business Developers

2 Diversity of Entrepreneurial Financiers 59

Sources of entrepreneurial capital 59

Principles and practices 70

3 PE Leaders' Strategies 79

The PE process and savvy decisions 79

'Controlling' versus 'minority' interests 83

Club deals 86

Managing acquired companies 88

Negotiation or auction: technical and psychological skills 92

Capital and tax structures 98

4 Transaction Channels and Regulatory Issues 106

Stock exchanges 107

Inter-fund and trade transactions 109

Securitization of PE portfolios 111

Challenges of PE securitization 115

Hedge funds and private equity 117

Whither PE performance? 119

Private versus publicly-listed companies 121

5 Business Leaders, Stakeholders and the Value Pie-A Summing-up 130

Success profiles 130

Revenues and compensations 133

Sharing gains among stakeholders: an elusive equilibrium? 138

Part 3 Investment Dynamics

6 Private Equity as a Wealth Recycler Benoit Leleux 147

The great capitalistic washing machine 147

The long-term capital virtuous circle 148

Private equity and wealth creation 150

Sand in the virtuous cycle 151

Private equity in the subprime whirlwind (Summer 2007) 154

The 2008 credit crunch and beyond 160

The recycler is not broken, so don't fix it! 161

7 A Concluding Reflection 163

Index 169

Editorial Reviews

'Professor Mikdashi's new book on entrepreneurship via the private equity route is propitiously timed This book is rich in insights' - Samuel L. Hayes, Harvard Business School, USA

From the Publisher