Takeover Fever in Small-Cap World

A modern day investment banker and Jean-Jaques Rouseau have very little in common, but they would both agree that all is in flux.  Last week every investment bank in America went the way of Yankee Stadium.  The movement of the markets finally overwhelmed all of the banks and they have all sought the security and stability of commercial banks.  Private equity funds have found it difficult in the last few weeks to close deals, most notably Private Equity Partners' close of target Informa PLC.  Reports suggest that banks were not able to provide enough senior debt to leverage the deal.  A familiar story.  

According to this report from the Financial Post, small to mid-market firms continue to aggressively pursue buyouts.  These deals require far less debt to execute and can rely more on mezzanine financing to structure a deal while securing the required returns.