Jaded Consumer

American Capital Strategies Illustrates Private Equity Risks in Merisel Pull Out

Onlookers likely overestimate the litigation cost and liability risk of ACAS in the transaction, or they read bad news about Merisel (which ACAS didn't buy) and conclude there must be more cockroaches in the ACAS kitchen. I think the deal collapse represents an indication that ACAS takes due diligence seriously and really doesn't want to own duds if it can be helped -- and it's willing to take short-term lumps to achieve this.
I've commented on this previously here:
jadedconsumer.blogspot...

I don't think the take-home story on Merisel is that at ACAS, Homer nodded -- but that someone at ACAS was awake at the wheel and averted a disaster that actually materialized later on.

Good show, I say.