Uploaded August 2024 | Updated September 2026, 1 week ago
Session Description: In this session, I look at the investor groups, especially private equity and activists, who try to make their money by targeting companies in decline. In some cases, they do so, because the price is attractive, and in others, because they think that breaking up or even liquidating the firm can deliver more value than continuing as going concerns.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch17.pdf
Exercise:
a. If you had the capital and the capacity, do you think you would be a private equity investor? If yes, why? If no, why not?
b. As a public market investor, what approach to investing in declining companies offers the best odds for you? Why?
Session Description: In this session, I look at the investor groups, especially private equity and activists, who try to make their money by targeting companies in decline. In some cases, they do so, because the price is attractive, and in others, because they think that breaking up or even liquidating the firm can deliver more value than continuing as going concerns.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch17.pdf
Exercise:
a. If you had the capital and the capacity, do you think you would be a private equity investor? If yes, why? If no, why not?
b. As a public market investor, what approach to investing in declining companies offers the best odds for you? Why?
