LBO candidate search firms

Private equity funds and hedge funds are not always at odds. Bush Helzberg and Jonathan Angrist, who started their Private Value Arbitrage Fund in 2003, seek out shares of small- and medium-sized companies that they sense are likely to be bought out. According to MarketWatch, they analyze companies the same way private equity shops do and buy if the stock is trading at a perceived discount. Then they are likely to call the company's top executives and try to interest them in a going-private transaction. If the answer is yes, they play "matchmaker." Helzberg and Angrist call private equity firms that they have gotten to know and suggest a meeting. Sometimes, if a deal works out, they end up with a finder's fee. They say more companies are receptive to the idea.

Our take on this news: This is actually a process that numerous firms have done for many years now. Those firms just kept a low-profile and stayed out of the news, now the "cat is out-of-the-bag" and we're sure this industry will be abused and wrecked just like every other good thing about Wall Street. Too many so-called experts doing poor work. Sad to see in many respects, just hope that the great firms that we're acquainted with doing "search" work don't fall by the wayside because of pure greed by acquiring firms.