Risks abound for private equity deals abroad

We've discussed this before: Fears are mounting across the globe of a backlash against private equity firms as governments try to balance local politics with the benefits of private equity investment. The notion of foreign investment does not strike a negative chord. Cross-border M&A across all markets rose to $716 billion last year, an 88 percent increase over 2004. But the stereotype of private equity investors as pirates seems to be lurking. We've mentioned the saga of Lone Star in Korea. But similar whispers can be heard coming from Germany, the U.K., China and even Japan. This is mainly a PR issue. Countries do not like hearing about massive foreign profits being made from local investments. Companies would be wise to lay the PR groundwork for their investments.

For more:
- here's an article from Investment Dealers' Digest (For FierceFinance readers)