Private equity firms are learning that “private” can be a disadvantage in the era of digital social networks. G7 voters are frustrated by prolonged poor economic performance, falling prosperity and growing income disparities. P/E firms are an all too convenient target, and US presidential candidate Mitt Romney is bringing unwelcome exposure to the industry. There is a strong populist theme to U.S. and European politics, which sets the scene for a prolonged era of criticism, precisely when the industry is struggling, and firms are closing.
Smart P/E firms will be grounded and strategic about building trust among lawmakers, their publics and other stakeholders, and using digital social networks could play a key role in educating stakeholders and interacting with readers with transparency and principles, thereby building trust and dampening criticism. Specifically, P/E firms should:
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The sub-prime induced correction of the U.S. financial sector has changed the context around M&A during the last year, and mergers and acquisitions experts met last week to share success stories, lessons learned and admonitions at the Alliance of Mergers & Acquisition Advisors Summer Conference July 22-25, 2008 at Chicago’s Wyndham Hotel. I was asked to present a new talk, “Leveraging a Web 2.0 Ecosystem to Grow Your Business,” and I had the opportunity to attend some of the other sessions. I’ll summarize their key points before adding some thoughts on the promise that Web 2.0 and social networks bring to deal marketing due to significantly decreased transaction costs.