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In my experience, a private equity take over is the kiss of death.
by annoyingnoob 7y ago
In my experience, a private equity take over is the kiss of death.
- dmix 7y agoIt's easily the bottom of the barrel type recovery. Although historically private equity has been a net gain for struggling businesses that would otherwise go out of business. There was tons of anti PE stuff after the financial crisis and they received some of the earlier and harshest attacks from congress and other groups, but the data didn't support the idea they were some corporate raiding vultures and far more often turned around ventures in precarious positions. But ultimately its not something you go to when they are going well. Unless there is some obvious value add consolidation scheme.
- annoyingnoob 7y ago>Unless there is some obvious value add consolidation scheme. The kiss of death works in mysterious ways, the synergy is palpable.
- dmix 7y agoI would read this book
- batmenace 7y agoThey could just as well be buying it as a platform for their portfolio, and look to buy more similar companies to consolidate. PE is more than just buying struggling companies, it’s often buying fairly valued companies in a fast growing sector, and then expanding them, or finding ways to cut costs.