Louis Lehot Discusses the Rise of Secondary Buyouts and Whether it Would Last

Authors: Louis Lehot, Eric Chow, Foley & Lardner LLP

Secondary buyouts (SBOs) have rebounded as private equity firms seek faster exits. PitchBook's data shows these deals accounted for 30.5% of PE exits in Q1 2023, compared to 25.2% in 2023. SBOs offer speed, efficiency, and instant liquidity for sellers, but may not yield higher valuations. They can also help manage portfolios and diversify, but may come with risks like overpayment and issues with leadership. The future holds potential for SBOs to continue growing as investors seek predictable exits.

For more insights, read the full article here: Secondary Buyouts on the Rise – Will it Last?

Originally published on Foley

Author’s Bio:

Louis Lehot is a business lawyer and a partner at Foley & Lardner LLP, serving in Silicon Valley, San Francisco, and Los Angeles. Specializing in emerging growth companies, venture capital, and M&A, Louis is renowned for his expertise in providing practical legal strategies to entrepreneurs, innovative firms, and investors across various industries, including technology, digital health, life sciences, and clean energy. With a client portfolio ranging from public and private entities to financial sponsors and investment banks, Louis has facilitated numerous companies through formation, financing, governance challenges, and strategic transactions. Clients, colleagues, and industry guides alike commend Louis for his exceptional business acumen, legal proficiency, and leadership within Silicon Valley. Louis thrives on guiding his clients through every stage of growth, from garage to global, facilitating successful public offerings, and securing optimal liquidity events.

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