Will KKR Take Harley-Davidson for a Ride?
Speculation that Kohlberg Kravis Roberts might buy Harley-Davidson is driving up the share price. But will Harley devotees be happy with the changes that might result if the private equity deal goes through?
Speculation that Kohlberg Kravis Roberts might buy Harley-Davidson is driving up the share price. But will Harley devotees be happy with the changes that might result if the private equity deal goes through?
Private-equity firm KKR is finally ready to list on the New York Stock Exchange. It's been a long wait: The firm made its IPO filing in July 2007. Its fourth-quarter economic net income came to $515.3 million, and the company is poised to ride a revived deal market.
It's been awhile since private-equity firms had news this good to celebrate: Three major firms will split a juicy $1.75 billion dividend from HCA, the largest hospital operator in the U.S., which they took private back in 2006 for $33 billion.
In today's difficult market, private-equity firms are looking for creative ways to invest their clients' money. One way is a buildup: Spot a market opportunity, hire a talented management team, and create a whole new company through acquisitions. KKR has just such a plan.
Now that private equity is no longer producing monster returns, it's time to assess its value. By using debt, buyout shops have taken over struggling companies and enriched investors. But critics say the practice leads to more layoffs and the "flipping" of companies.









