Private Equity Takeover Targets

Private equity has a lot of money to invest. The buying binge has just begun. The best way to spot future deals is to see what multiples private equity firms paid in recent buyouts. I focused on the retail sector.

Recent Deals
Golf Galaxy (9.9 xEBITDA) (0.82 xSales)
Eddie Bauer (9.3 xEBITDA) (0.6 xSales)
Yankee Candle (9.8 xEBITDA) (2.1 xSales)
OSI Restaurants (9.0xEBITDA) (0.77 xSales)

Based on recent deals, look for companies trading under 7 x EV/EBITDA , Price to sales under 1, a low amount of debt, and real estate assets)

Takeover Targets, EV/EBITDA, Price/Sales
Finish Line (FINL), 5.5, 0.50 (No long term debt)
Barnes & Noble (BKS) , 5.9, 0.51 (Stock options overhang)
Kirkland's (KIRK), 6.0, 0.21
Charming Shoppes (CHRS), 6.2, 0.56