Sell-to-yourself is on the rise, but who gets the best deal?

Why are private equity groups under pressure to sell companies within a certain timeframe?

• They are required by law to sell within 5 years.

• They want to expand their portfolio quickly.

• They need to return profits to their investors.

• They aim to avoid market competition.

What is a common strategy used by private equity groups when they don't want to sell a company?

• They merge the company with another.

• They create a new fund to buy the company.

• They list the company on the stock market.

• They dissolve the company.

Which company was mentioned as being sold to itself by Clayton, Debilier and Rice?

• Bellron

• Lonely Planet

• Red Ventures

• Blackstone

Where do new funds often get their money from in these self-sale transactions?

• Directly from the stock market

• Secondary funds

• Corporate bonds

• Government grants

What is a criticism of private equity groups selling companies to themselves?

• It reduces the number of available companies.

• It increases transparency in the market.

• It ensures fair pricing for all investors.

• It allows for higher and higher valuations.