1.   There is tremendous scope for MBOs to create value, both for parent companies and private equity investors.

2.   How do the needs of long-term lenders differ from those of equity investors?

3.   In fact it is becoming increasingly common to request a confidentiality undertaking not only from the prospective purchaser, but also from the proposed equity investors and their advisers.

4.   The equity investors will wish to commission a thorough investigation of the business-- due diligence --before committing themselves to the purchase.

5.   These warranties are likely to be given both to the equity institutional investors and to Newco.

6.   The equity investors will always seek certain specific warranties.

7.   It is therefore normal to provide in the Articles that the consent of the equity investor or its director will be required before the payment of any dividends.

8.   Among the large mutual fund companies, only Vanguard offered evidence of recent bullishness among equity investors.

9.   And equity investors can find bargains in cash-strapped local industries.

10.   And higher rates could spook equity investors if they conclude that the economy and earnings growth will finally slow significantly.