ACS Deal Illustrates Sponsor Group Fragility

Lewis, Janet
January 2006
Investment Dealers' Digest;1/23/2006, Vol. 72 Issue 3, p9
Trade Publication
The article reports that consortium between buyout firms and tech outsourcing company Affiliated Computer Services Inc. reveals the difficulty of putting and keeping together alliances of financial sponsors. Private equity firms have teamed up in recent years to execute larger and larger buyouts, but investment bankers believes that forming these consortia can be a tricky process. Private equity firms are generally amenable, since their goal is to win the auction and teaming up with rivals reduces competition. For investment banks, assisting in putting together a group can be fraught with potential conflicts of interest, especially if they are selling the company through an auction.


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