Costco Wholesale (NASDAQ:COST), which has 23 million members, got a bullish take from Barron's last week.

Despite its large size, the company continues to grow nicely. Earnings are expected to increase at 10%+ annually and same-store sales continue to be strong.

Could Costco be a buyout candidate?

Perhaps. The company has a rock solid balance sheet, with $2 billion in cash. It also owns about 78% of its stores. This should make it easy to raise a lot of debt to get a deal done.

And with the high valuation of Equity Office Properties Trust (NYSE:EOP) buyout, there should be some interested buyers.

In the meantime, Costco still looks good as a standalone investment. Hey, even Warren Buffett's Berkshire Hathaway (NYSE:BRK.A) owns 5 million shares.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Founded in 1998, Fortress Investment Group (NYSE: FIG) has quickly become a big force in alternative investments – such as private equity and hedge funds. The firm's team has posted standout investment results.

It's a very profitable business, with net income of $192.7 million in 2005.

However, for the most part, top-notch alternative investment firms are private (only available to the wealthy and institutions). So, why go public?

After all, a public company is subject to rigorous disclosure requirements. There is also the substantial potential liability of Sarbanes-Oxley.

Well, in Fortress's SEC filing, the company does provide some reasons:

People: The alternative investment business is a intellectual capital business. That means, you need very smart investment pros.

It canbe tough to attract such talent. By having public stock, it is easier to structure improved compensation packages (ie, by offering stock options and other equity grants).

Permanence: Every three to four years, a fund must do a capital raise. This is time-consuming and is distracting.

By accessing capital from the public, Fortress now has a permanent source of funding. Interestingly enough, this is essentially what Warren Buffett has done with Berkshire Hathaway (NYSE: BRK).

Currency: Fortress can use its stock as a way to buy other funds. It's a source of leverage.

Oh, and of course, a public offering can make the main shareholders very rich. This is certainly the case at Fortress, where several of its principals are now billionaires.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.