peHub Second Opinion

The Lenders Ain’t Lendin’, the Sellers Won’t Sell

***Good news for private equity when it comes to bank bail-outs, according to the Fed. I wonder, which kinds of firms are itching to infuse banks with capital? Mega-funds that don’t have deals to do? Turnaround firms? Hybrid hedge fund-PE firms?

***Headwaters MB, a mid-market investment banking firm, produced a few chuckle-worthy recession tribute songs. Think of them as Finance Carols. Check them out here. They’re good for a cheap laugh, and if you only listen to one, I recommend “Preferred Return Blues.” It’s about private equity but sung in a grizzled blues voice. It offers an all-too-true line: “The lenders ain’t lendin / the sellers won’t sell / its use it or lose it / ROE’s gone to hell.” Better than the Financial Follies, I say!

***The Deal is reporting that the Dave & Busters auction is dead. Wellspring Capital bought the company in 2006, and according to a source quoted by The Deal, “‘The buyers weren’t going to give [Wellspring] a 100% IRR in two years.’” I can’t help but agree, since Dave & Busters is both a restaurant and a gaming/entertainment business facing recession and rising costs (for food, not skee-ball machines). I’m surprised they thought someone would pay 8X in such an environment, so I have to wonder why are they selling now?

**Seeking Alpha thinks consumer magazines have a better chance of making it than newspapers, but they better consolidate.