Credit market turmoil is altering the global playing field in buyouts and acquisitions a field rife with complaints in recent years about too much money chasing too few good deals. The credit shortage puts pressure on pricing and transactional quality while also giving public companies a better shot at acquisitions that the more aggressive private equity firms might previously have snatched away. These are some practical implications of a paper presented at a recent Wharton conference sponsored by the Weiss Center for International Financial Research. The paper documents the pricing anomalies that have characterized private equity transactions in recent years. Chief among them: The greater the leverage applied to a deal the greater the price it has tended to command.

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