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SOP for PE's is to come in, cut costs, and improve the bottom line without affecting revenue or service. Customers typically aren't affected but employees are.
by bduerst 7y ago
SOP for PE's is to come in, cut costs, and improve the bottom line without affecting revenue or service.
Customers typically aren't affected but employees are.
- jacquesm 7y agoThat's one 'kind' of PE, another is the one that will invest very large sums of money to repeat a play in new markets or to professionalize a company across the board and then use them as a cornerstone in a buy-and-build strategy.
- mbesto 7y ago> SOP for PE's is to come in, cut costs, and improve the bottom line without affecting revenue or service. This is fundamentally untrue. Large CAP ($1B+ valuations) is notorious for this, but there's about 5k PE deals per year and those deals are the exception, not the norm, in terms of shear volume. They're great for headlines though! (hello Toys 'R Us) Most of them are about adding value through various means, one of those might be cutting unnecessary costs.
- deleted 7y ago[deleted]
- formercoder 7y agoThat’s what’s in the news. No one publishes stories about companies who are bought by sponsors, grown and supported, and exited. They are often private the whole time as well.