Nov 27, 2008

What are they looking for: VCs versus LBOs

Neither one is looking so hot in this environment, but nonetheless...

Venture capitalists' desired investment characteristics:
  • The size of the potential market
  • The technology (feasibility, barriers to imitation)
  • The management team

On the other hand, leveraged buyout shops are looking for:

  • Demonstrated profitability
  • Strong and predictable cash flows
  • Readily separable assets
  • Strong management team
  • Non-high-tech products

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