Despite Solid 2010, Retail Buyout Firms Cautious – Bloomberg News & Dow Jones Newswires

Anthony Choe, a partner with $500 million consumer-focused private equity firm Brentwood Associates in Los Angeles tells Bloomberg News & Dow Jones Newswires that retail buyout firms will be more selective the rest of this year despite a solid 2010.
From Dow Jones Newswires …

“2010 was marked by private equity firms taking publicly traded consumer companies private, but with the substantial rise in the equity market, prices have become a bit expensive,” Choe said. “Most of the obvious take-privates have already happened or are actively engaged in conversations, so future retail buyout activity is more likely to include a greater proportion of private deals.”
Read the full Dow Jones article
From Bloomberg News …
This year, managers have announced more than 50 deals worth about $4 billion, the data show. With last year’s enthusiasm still fresh, some retailers may expect higher prices than buyout firms are willing to offer, Choe said.
“Sellers are going to be looking at 2010 saying ‘Hey, we had a banner year, the future’s rosy,’” said Choe, whose firm’s prior investments include clothing retailer Zumiez Inc. (ZUMZ) “We’re going looking at stuff saying, ‘Yeah, but look at all the stuff that’s come down the pike.’”
Read the full Bloomberg article