How Does TDG Stack Up Against Other Potential Acquirers?
| TDG | Traditional Private Equity | Typical Strategic Buyer | |
|---|---|---|---|
| Investment Objective | Long Term Growth in Earnings/ Value | IRR | Create Synergies, Improve Earnings |
| Willingness to Preserve Management’s Operating Autonomy/Entrepreneurial Spirit | High | High | Low |
| Opportunity for Management Equity Position in Sold Company | High | High | Low |
| Flexibility in Structuring a Transaction Customized to Managers/Owners Needs | High | Low | Low |
| Ability to Provide Operating Resources | High | Low | High |
| Holding Period | Long | Short | Long |
| Decision-Making | Fast | ? | Slow |
| Potential for Sellers to Remain Invested in Business after Sale | High | Low | Low |
| Importance of Placing Maximum Leverage on Business | Low | High | ? |
| Focus on Organizational Development/ Concern for the Employee | High | ? | ? |