Private equity funding: looking for investment targets

The recent recession produced numerous consequences. Rampant unemployment, plunging stock values, greatly reduced product demands and an over-abundance of financially strapped companies combined to create a risk-averse marketplace devoid of a steady flow of new capital. Throughout the past two years, investors of all types -- private equity (PE), venture capital and angel investment sources -- have shown a greatly diminished interest in overly leveraged transactions. PE funds provide an infusion of needed cash into businesses, companies and operations with the intention of improving earnings and yielding favorable returns for investors. During a massive restructuring, it's important to acknowledge the success and failure of most businesses is largely determined by people. Once ownership is assumed, no matter the degree or percentage, PE fund managers will expect ongoing accountability for the length of their involvement. CFOs then have an obligation to meet those demands with the best available resources.