As expected, the Blackstone Group LP (NYSE: BX) had a brutal Q3. There was a loss of $502.5 million, or $0.44 per share, which compares to earnings of $234 million, or $0.21 per share in the same period a year ago.

The downdraft is a combination of minimal dealmaking and writedowns of the portfolio. In fact, Blackstone says that the global economy will suffer a harsh recession and as a result, has taken steps to bolster its companies.

Now, Blackstone had some good news. For example, assets under management increased 18% to $116.3 billion. In other words, the firm has lots of dry-powder to get deals done (that is, once markets warm up). In fact, some deals are still getting completed, like the $1.7 billion buyout of Apria Healthcare Group Inc.

Blackstone is also getting traction with its M&A advisory business, which posted a $61.1 million gain.

Interestingly enough, Blackstone's Hamilton E. James sees signs that the credit markets are thawing out. This is certainly critical for the reemergence of dealmaking.

Yet, investors are still skeptical about Blackstone's stock. After all, it will likely take a couple years for returns to get back into shape.

So, now there are rumors that Blackstone will, ironically enough, go private (this is something speculated by Breakingviews). Hey, isn't this the advice that the firm gives its clients -- especially when public markets are harsh?

Besides, Blackstone's rich partners could probably pitch in a lot of capital to buy back the shares -- which means there won't be as much reliance on borrowing money.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

Mikron Infrared Inc. (NASDAQ: MIKR), which develops sensors and heat switches, has seen its stock price get cut in half since its third-quarter report. Because of the competition, the company is facing extreme pressure on pricing.

Well, the company has decided to go private – in a transaction worth about $65 million. The buyer is LumaSense Technologies, which focuses on chemical sensors.

The premium is reasonable: about 17.6%. But, it is no where near where the stock was just a few months ago.

Yet, in the tech world, things can change fast and unfortunately, this looks like the best alternative for Mikron.

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

Yesterday, I wrote about Jim Cramer's prediction that The Gap, Inc. (NYSE:GPS) would be taken private in the not-so-distant future. Today, the Motley Fool continued the speculation with a series of "Dueling Fool" posts debating the future of the company.

One argument for taking the company private is that we are in the midst of "feeding frenzy" of leveraged buyouts and that a favorable private equity deal may not be favorable a few years down the road. Going private would remove the company from the scrutiny of public opinion and allow the company to take more drastic steps to improve.

If I were a shareholder of Gap, I would probably support the idea of a sale. The company has been under-performing for years and the turnaround efforts have not worked. A buyout could put Gap shareholders out of their misery at a nice premium to the current price.

Earlier today, Goldman Sachs Group, Inc. (NYSE:GS) reported that it raked in a whopping $9.34 billion in 2006, a record-high in the history of organized finance. The company plans to pay out $16.5 billion of that to its employees, to the tune of $622,000 per person. Goldman's fiscal fourth quarter saw profits increase 93% year-over-year, to $3.16 billion, or $6.59 per share, well above the consensus estimate of $6.36. (You can read more about the numbers here.)

Goldman's record year could signal similar results from the other investment banks set to announce their earnings over the next two weeks, and the Times article goes on to describe the incredible economic boost these numbers will give downtown Manhattan. Purveyors of high-end goods and services are rubbing their hands for a very merry holiday season.

This news is even more striking when you consider that Doug Kass over at TheStreet.com lists Goldman going private as a possible (if unlikely) surprise for 2007. You have to give credit where credit is due: If Goldman is set to leave us, it sure went out with a bang.

According to a Wall Street Journal report [subscription required], Timberland (NYSE: TBL) has hired Goldman Sachs (NYSE:GS) to explore strategic alternatives. That is, it looks like the company wants to sell out.

The company got its start in 1918, although it was not called Timberland until 1973. But, before then, the company was certainly an innovator. For example, during the 1960s, it used injection-molding technology for its boots.

The Swartz family (who founded the company) is still in absolute control of the company, with about 70% voting power. There's a good chance the family wants to keep control of the company –- which means pursuing a leverage buyout. And, with all the money in private equity funds, this deal certainly looks doable. In fact, yesterday Eddie Bauer announced it is going private.

In fact, Timberland's stock has been fairly weak this year. So the family should get a good valuation.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Yes, private equity firms are very hungry. And they are bulging with cash. This year alone, private equity funds have raised a stunning $178 billion.

Well, today, the private equity firms of Bain Capital Partners and Catterton Partners agreed to take OSI Restaurant Partners Inc. (NYSE: OSI) private. This is the parent company for the popular restaurant, Outback Steakhouse.

The deal comes to roughly $3 billion.

The timing is good. This year, OSI's stock has dropped from about $40 to $32 per share. It seems that high oil prices have put a crimp in people's dining budgets.

Interestingly enough, OSI announced that it will take a bigger charge for its recent gift card problem. Instead of reserving $20 million to $40 million, the amount will likely be $50 million to $70 million.

Why deal with this mess as a public company?

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Usually, when a company goes private, management uses cash from private equity firms. In the case of Four Seasons Hotels (NYSE: FS), management instead has turned to mega-rich investors, including Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud and Bill Gates (who has his own fund, Cascade Investment, LLC).

The price tag for the buyout is $3.7 billion, which means a very nice day for shareholders. This represents about a 28% premium from last Friday's closing price. It's also 21% above the stock's 52-week high.

The Four Seasons has the main ingredients for a deal: tremendous brand, good cash flow and choice real estate holdings around the globe.

The deal is also an indication that 'smart money' types see long-term opportunities in the hotel industry. So why not get a piece of the action?

The biggest winner, though, is CEO and Chairman of the Four Seasons, Isadore Sharp. He will get a severance payday of $288 million. Is it any wonder he wanted to do a deal?

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Over the past few years, the stock price of Jacuzzi (NYSE: JJZ) has been stuck in a trading range of about $8 to $10. It has certainly been frustrating and, as a result, the company decided to go private – with the help of the private equity firm, Apollo Management LP.

The offer is for $12.50. Actually, this is still below Jacuzzi's 52-week high of $12.56. The total value of the deal comes to about $990 million -- which is actually a fairly small deal compared to recent blockbusters, such as HCA and Freescale.

Jacuzzi has been undergoing a restructuring, which is starting to show results. This should set the stage for a strong 2007.

Also, another big attraction is the company's brand. Actually, it was the Jacuzzi brothers who started the company in the early 1990s. And, over the years, the company has been able to acquire over 200 patents on its innovations.

In other words, there is stability with Jacuzzi, which is key with private equity. Basically, this looks like a pretty easy deal to get done.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Cypress Semiconductor's (NYSE: CY) stock price has been hot over the past couple weeks – going from $16 to $19.65 per share.

Well, the rumor is that Cypress is a possible buyout candidate. After all, private equity money has been rushing into the tech sector, as seen with deals like Freescale and Philips Semiconductors.

In fact, last week, Cypress announced it is looking at "strategic options" for its crown jewel; that is, the investment in SunPower (SPWR), which develops solar cells. The company has been growing at a torrid rate.

Cypress owns roughly 69% of SunPower, which has a market value of $1.8 billion. That translates into a value of $1.2 billion. As for Cypress, it has a market value of $2.7 billion.

In other words, Cypress may present an attractive "break-up" play for private equity investors.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Lately, a variety of major companies have decided to go private. Why not? The costs of being a public company are high. Also, Wall Street can be tough – every quarter. And, the legal risks for management and the board are also significant.

Now, the Dolans, the founding family of Cablevision Systems Corp (NYSE: CVC), wants to take the company public. The deal has a value of about $7.9 billion (or $27 per share).

The family certainly has a lot of power in the situation, with a collective ownership stake of 22.5%. More importantly, it has 74% voting power (because of a special class of shares).

Cablevision has a lucrative segment of the cable market: New York City (about 3 million subscribers). The company has other assets like Madison Square Garden, Radio City Music Hall, the New York Knicks and the New York Rangers. Interestingly enough, last year, the Dolans tried to buy part of Cablevision, but the deal was dropped because it was too convoluted.

Cablevision has some other reasons to be private. After all, the company is in the midst of the options backdating scandal. In fact, as we learned last month, the company granted options to a dead executive.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

After reaching $100 a share in 2000, it's been mostly torture for shareholders of 3Com as it spiraled lower and lower. But today, the stock got some juice, increasing 12.58% to $5.01.

A report from Bloomberg indicates that the company is a possible takeover target. The theory is that one or more private equity firms will make a bid of $7 per share.

Apparently, the big interest is in 3Com's joint venture with Huawei Technologies Co. This has been a key growth driver.

But, with the recent big buyout deals – such as the takeover of Freescale – there are now a lot of rumors swirling. For the most part, rumors are just that. So, as always: investors beware.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

The rumor – reported by the Wall Street Journal – is true. Harrah's (NYSE: HET) is in play. According to a press release, two private equity firms -- Apollo Management and Texas Pacific Group – have made a buyout proposal to the company for $81 per share (all cash).

With billions rushing into private equity funds, it is inevitable to see huge deals. And the Harrah's offer certainly qualifies.

It also shows something else: private equity firms are not focusing only on brick-and-mortar companies. Now, it seems just about any kind of firm is a target.

True, the gambling business can be a cash cow. But it is also risky and competitive. And, in the case of Harrah's, the firm sports a whopping debt load of $10.2 billion.

Interestingly enough, over the past few years, Harrah's has bulked up. That is, the company purchased Caesars.

The company also has a bit of dot-com magic. That is, it has a sophisticated consumer database that helps to optimize gambling at its casinos.

It could also be a good deal for the Apollo Management and Texas Pacific Group. After all, Harrah's stock has been slipped badly this year. Even though the buyout offer is $81 per share, it is still below the 52-week high of $83.33.

Yet, the stock is currently trading about $76. In other words, investors are not betting on other bidders coming to the table.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.