Since the early 1990s, the private equity firm Texas Pacific Group has built a great reputation with turnarounds. One marquee deal was Continental Airlines (NYSE: CAL). TPG has also been quite savvy with high-tech targets. For example, the firm is in the process of buying Avaya Inc. (NYSE: AV).But it's not a complete cake-walk for TPG. Take a look at the firm's $560 million deal to buyout consumer electronics company JVC. The issue? Well, lenders are backing off. After all, interest rates have been rising.
What's more, JVC is still deteriorating. It is in a tough marketplace and must compete against biggies like Sony Corporation (ADR) (NYSE: SNE).
Even so, a deal still may get done -- but not necessarily with TPG. Rumor has it that Cerberus Capital may may be interested in JVC too.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
