Kohlberg Kravis Roberts & Company (KKR) is preparing for an initial public offering next week, and if you are smart, you will steer clear.

After a three-year struggle to make this IPO a reality, company founders Henry R. Kravis and George R. Roberts -- who each own 13% of the company -- are excited to see their shares actually start trading on July 15 on the NYSE. After all, they each stand to make nearly $800 million on the venture.

Individual investors, on the other hand, should avoid this IPO. Here's why.

You may be interested in buying an HDMI cable or a cell phone from RadioShack (RSH), but it looks like a few private equity companies and one competitor may be interested in buying the entire company. According to dealReporter, RadioShack had set a July 1 deadline for non-binding indications of interest from any company that was looking at buying the company.

Analysts are speculating that the same private equity companies that were mentioned in a June 1 New York Post article -- Blackstone Group, Kohlberg Kravis Roberts, Bain Capital and TPG -- might still be interested in the consumer electronic retailer. That same article also mentioned that Best Buy Co., Inc. (BBY) may be interested in clearing the competitive landscape by acquiring RadioShack.

At midday this afternoon Harley-Davidson (HOG) was more than 5% higher, trading above $28 thanks to rumors of a potential leveraged buyout. Reportedly, private-equity firm Kohlberg Kravis Roberts (KKR) was named as the potential purchaser. That said, both HOG and KKR have declined to comment on the rumor. Thanks to the rumor, trading has been brisk across both the stock and options markets.

Private equity giant KKR & Co. (NYSE: KFN) posted a $1.2 billion loss last year -- compared to pretax net income of $815 million the year before. This is KKR's first loss in at least five years.

Bloomberg pins the blame on a drop-off in leveraged buyout transactions. A $1.4 trillion market in 2006 and 2007, only $212 billion was spent on takeovers last year, which was bound to put a dent in KKR's top and bottom lines.

Bloomberg reports that Gome Electrical Appliances Holdings Ltd. may sell up to 20% of the company to Bain Capital. The asking price is said to be in the neighborhood of $500 million. KKR & Co. and Warburg Pincus are also said to be interested in the stake in Gome.

With more than 800 stores in 160 cities, Gome is China's second-largest electronics retailer, which makes it a tempting target for investors looking for alternatives to recession-constrained businesses in the United States, Europe, and developed markets in Asia.

Bloomberg reports that Gome Electrical Appliances Holdings Ltd. may sell up to 20% of the company to Bain Capital LLC. The asking price is said to be approximately $500 million. The other companies competing for the piece of Gome are KKR & Co. (NYSE: KFN) and Warburg Pincus.

Gome is the second-largest electronics retailer in China, with more than 800 stores in over 160 cities. So it makes a nice target for investors looking for alternatives to recession-constrained businesses in the United States, Europe and developed markets in Asia.

Leveraged buyout guru Henry Kravis, cofounder of the legendary private equity firm Kohlberg Kravis Roberts, tells Forbes that he believes private equity will come back from the hit it has taken from the financial crisis.

"It's not dead at all, but it will take different forms," he said.

Kravis compares the current economic environment to 1979, when, the U.S. economy was struggling, inflation was at 13%, unemployment at 11%, and zero financing was available. But then, of course, followed the explosion of private equity in the 1980s and 1990s.

Leveraged buyout guru Henry Kravis, cofounder of the legendary private equity firm Kohlberg Kravis Roberts, tells Forbes that he believes private equity will come back from the hit it has taken from the financial crisis.

"It's not dead at all, but it will take different forms," he said.

Kravis compares the current economic environment to 1979, when, the U.S. economy was struggling, inflation was at 13%, unemployment at 11%, and zero financing was available. But then, of course, followed the explosion of private equity in the 1980s and 1990s.

Buyout funds managed by private equity giants Apollo Management LP and Blackstone Group LP (NYSE: BX) are among a growing number of limited partnerships that have experienced sharp declines in value, reports the Wall Street Journal, which highlights the economy's impact on such funds, as well as the influence of mark-to-market accounting.

Apollo and Blackstone recently disclosed to investors the values of their last buyout funds at year-end. Apollo Investment Fund VI LP, a $10.1 billion investment vehicle that closed in 2005, was held at 34% below cost. Perhaps the most notable Fund VI deal is Harrah's Entertainment Inc., which has struggled with its debt covenants. Apollo and TPG Capital LP acquired Harrah's in January 2008 for $27.8 billion.

Buyout funds managed by private equity giants Apollo Management LP and Blackstone Group LP (NYSE: BX) are among a growing number of limited partnerships that have experienced sharp declines in value, reports the Wall Street Journal, which highlights the economy's impact on such funds, as well as the influence of mark-to-market accounting.

Apollo and Blackstone recently disclosed to investors the values of their last buyout funds at year-end. Apollo Investment Fund VI LP, a $10.1 billion investment vehicle that closed in 2005, was held at 34% below cost. Perhaps the most notable Fund VI deal is Harrah's Entertainment Inc., which has struggled with its debt covenants. Apollo and TPG Capital LP acquired Harrah's in January 2008 for $27.8 billion.

Were you wondering which sector of the U.S. economy would be next to take a dive from the year-old credit crunch? Well look no further, because Barron's [subscription required] reports that private equity firms like Apollo Global Management, Kohlberg Kravis Roberts, and Blackstone Group (NYSE: BX) are hurting gators thanks to too much borrowed money and the weak financial performance of the companies they bought. And business is way down, Barron's reports that through mid-August, the 2008 total deal volume "stood at $67 billion, versus more than $400 billion in the corresponding 2007 period."

This does not come as a surprise to me. In February 2007, I appeared on CNBC arguing that private equity had peaked. And I began to question its long-term viability back in August 2006 when Barron's Alan Abelson quoted my thoughts on the matter. The basic problem is that when debt is cheap, private equity booms and when it starts selling itself to the public, investors should hold onto their wallets for dear life. People who own private equity firms tap their superior knowledge of the coming downturn to convince the public to bail them out by buying their stock.

Barron's cites -- as evidence of trouble in private equity land -- examples of the declining value of the publicly traded debt in companies that private equity took private at too-high prices with too much borrowed money. It writes that bonds of "many companies taken private in the past two years have plunged to 50 cents on the dollar or less, signaling that investors fear they won't be fully repaid. Many companies that were the subjects of buyouts a year or two ago are so grossly over-leveraged that they're struggling simply to pay interest. If they were to default, debt investors would be stung, but equity investors would be even worse off; the value of their holdings would be deeply impaired or wiped out."

TheStreet.com's Jim Cramer says KKR will join the list of buyout firms that fleece the small investor by going public.

Just what we need, a private-equity firm to go public. That worked just great with Fortress Investment (NYSE: FIG) (Cramer's Take), and it was terrific with Blackstone (NYSE: BX) (Cramer's Take). At least this one is some sort of reverse merger that might not inflict too much pain on the public.

Of course, folks in this business are displaying their usual lack of shame. It would be an excellent time for them to have a good reason beyond employee retention; I mean if you are making all of that money, what's the issue with retention? It would also be terrific if they were doing well, but there hasn't been a deal in so long that it would be a bit of an oddity if they were doing anything other than making a lot of fees.

But Kohlberg Kravis Roberts is a storied lot, so I figure the public will lap it up and all will be well until the losses start.

Or maybe this will be the one that's in the blue moon and the public will not be pants'd by the really smart bankers.

This post is part of a series on some of the most memorable companies that have disappeared.

The number of brands associated with food processing giant Beatrice Foods was many and varied, including Airstream, Altoids, Avis, Blue Valley, Butterball, Culligan, Ekrich, Good & Plenty, Hunt's, Jolly Rancher, Krispy Kreme, La Choy, Meadow Gold, Orville Redenbacher, Peter Pan, Playtex, Reddi Wip, Samsonite, Swiss Miss, Tropicana, Wesson and World Dryer. Not bad for a small egg and milk packager in Beatrice, Nebraska, that in 1894 named itself after the former occupant of the building it leased.

In 1913 the company moved to Chicago, and by the 1930s it was a leading dairy in the U.S. The post-war baby boom was a boon for Beatrice, which doubled its sales between 1945 and 1955. Expansion continued through the 1970s, and by 1984, annual sales were about $12 billion.

Shortly thereafter, private equity firm Kohlberg Kravis Roberts (KKR) acquired a controlling stake in Beatrice through a leveraged buyout. Over the next few years, KKR sold off Beatrice assets. In 1990, what remained of Beatrice was sold to ConAgra Foods (NYSE: CAG).

MAJOR PAPERS:

• Bank of America Corporation (NYSE: BAC) is making a $2 billion equity investment in Countrywide Financial Corporation (NYSE: CFC), people familiar with the situation told the Wall Street Journal (subscription required).
• Ticket seller Ticketmaster, which is owned by IAC/InterActiveCorp (NASDAQ: IACI), has halted talks with concert promoter Live Nation Inc (NYSE: LYV), failing to reach a new, long-term agreement. The talks have "grown acrimonious" over the last year and a half, say people close to the situation, with Live Nation CEO Michael Rapino threatening to start his own ticketing company rather than renewing with Ticketmaster, according to the Wall Street Journal.
• Home Depot Inc's (NYSE: HD) sale of its wholesale supply division to a group of private equity firms is in doubt, due to uncertainty about the willingness of three investment banks to fund the deal, reported the Financial Times (subscription required).
  
• The Financial Times reported that Motorola Inc (NYSE: MOT) lost more than 7% of market share in the handset market in Q2, according to new figures.

OTHER PAPERS:

• Private equity firm Kohlberg Kravis Roberts has reportedly postponed its $1.25B initial public offering, after investors showed little interest in the IPO, reported the U.K. Times.

Station Casinos (NYSE: STN) volatility Elevated as Arbitrage spread widens. STN, a gaming and entertainment company owns and operates eight major hotel/casino properties & six smaller properties in Las Vegas. STN is recently down $1.61 to $81.30. STN Chairman & Chief Executive Frank J. Fertitta & Colony Capital expect to close on their $90 purchase of STN before year's end. STN October option implied volatility of 29 is above its 32-week average 17 of according to Track Data, suggesting larger price risks.

First Data (NYSE: FDC) volatility Elevated as Arbitrage spread widens. FDC, the world's largest processor of credit-card payments, announced on April 2 it would be purchased by Kohlberg Kravis Roberts & Co. (KKR) for $29 billion. FDC shareholders will receive $34 in cash for each share. FDC is recently trading down 81 cents to $30.20. The deal is expected to close in the third quarter. FDC September option implied volatility of 33 is above 16-week average of 17 according to Track Data, suggesting larger risk.

Guitar Center (NYSE: GTRC) volatility Elevated as Arbitrage spread widens. GTRC is recently down $1.46 to $55.47. GTRC announced on June 27 it would be acquired by Bain Capital for $63; the total transaction value is $2.1 billion. GTRC September option implied volatility of 26 is above its 7-week average of 15 according to Track Data, suggesting larger risk.

Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.