It is true that LBOs can injure companies - like what happened to Toys'R'Us bankruptcy after the Bain Cap & KKR buyout. It is especially dangerous in times of

It is true that LBOs can injure companies - like what happened to Toys'R'Us bankruptcy after the Bain Cap & KKR buyout. It is especially dangerous in times of inflated multiples like we are seeing these days, where PE valuations are kind of bubbling. The demand for M&A transactions is so much bigger than the supply that prices growth quicker than the underlying business value - making it usually harder to justify through profitability improvements. Yet the whole PE process does bring benefits to the underlying industries is buys, especially by providing investment capacities to businesses that usually don't have enough, and also by professionalization and by introducing sophisticated management standards to the companies (eg. in terms of strategic thinking, reporting, optimization, pricing, etc.).