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dynamic there that wasn't around three years ago." This has contributed to the slowing of the market "and why things are falling apart," says Fleming. "People are say- ing 'I'm not going to step up to the plate unless it is absolutely squeaky clean, because I don't have to.'" Deloitte partner and co-chairman of the group's Canadian private equity prac- tice Mark Jamrozinski, says one positive note in Canada's private equity funds are being afforded more time to turn things around. He points out Canada's banks are working with the funds to allow for time to effect changes and help stabilize the funds. "There is a level of co-operation between the banks and the private equity firms. You are not seeing the drastic measures being taken by the banks, you are seeing a significant level of co-opera- tion that is driven from two perspectives. One is there is value in those relation- ships with those funds and there is a mutual respect between the fund and the bank. "So they are not looking at it just on a portfolio company basis and I think that the banks realize the best strategy is not just to go and take over and try and effect change." One reason the Canadian banks may be more willing to work with the funds is because many of the acquisitions were through club deals, and not the large syndicated deals that are more com- mon in the United States. A club deal pools private equity funds allowing for several firms to acquire a more expen- sive company collectively, while limiting the overall risk to each individual fund because their overall stake in the com- pany is lower. While working with banks is impor- tant, looking for strategic opportunities is also part of what funds are doing right now. Much in the same way the RIM purchase of Certicom allows the com- pany to take over a supplier and build efficiencies, Jamrozinski believes private equity funds could be used in similar ways to build efficiencies. And deals pro- viding "strategic value" are the ones the funds are looking to do. The companies being forced to pare off assets are often your LAW OFFICE PRODUCTIVITY source Buy only the letters or numbers you need! • Available in complete sets or packages of individual numbers or letters • Sets from 1-2000, letters A-Z, Buff or White • Custom numbering up to 99999 and double alpha digits available • Bulk order specific numbers or letters to reduce waste, Indexes up to 30% post consumer content C For more information contact your D&D Sales Representative or call our Customer Care Line or visit us online E dyedurhambasics.ca • 1-888-393-3874 INHOUSE APRIL 2009 • 23 PREFERRED SUPPLIER N the ones that got away from their core competency and are being forced to "sell off divisions that take away from that." This could mean there is an opportunity to buy up a competitor, if its larger parent company decides the business unit is not part of what will make it successful in the future. One place these opportunities can be found is in Canadian subsidiaries that are not part of the parent company's overall core business. Still Jamrozinski notes there are issues facing even those types of deals and they can be found in the valuation of assets and companies can price themselves out of the market. Companies are trying to hold on DD CLIH B HlfA-05 OPTabs ad 3/3/09 10:55 AM Page 1 through the bad times, and wait until the market begins to rebound before they look to sell. And others are "forced to deal with the current market circumstances." IH Legal Specialty Products Dye & Durham is the largest supplier of Indexes U W e ' R r E e E V a E O D y C S a 8 I n P E 9 Y H a P N p d R & 9 i A D R m a I 1 D C n D FREE Samples Available & o D a F A n N R Y M G E L D