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Your view of how LBOs work is really misinformed. You picked 3 famous PE deals that failed, but those are exceptions. Apollo alone has done 150 private equity
by airstrike 6y ago
Your view of how LBOs work is really misinformed. You picked 3 famous PE deals that failed, but those are exceptions.
Apollo alone has done 150 private equity transactions, the vast majority of which have been tremendously successful otherwise investors would not be giving them more money to continue to invest.
- _jal 6y agoA lot of PE follows a well-understood playbook. Buy a player in a settled industry, cut costs (== reduce maintenance, make the workforce cost less, etc.) and milk it for as long as possible. That tends to work for investors; customers and employees, well. The Artist Formerly Known as SolarWinds is PE owned.
- CryptoBanker 6y agoSuccessful from the point of the PE firm is not the same as successful from the point of view of the acquired company
- airstrike 6y agoIt is if the alternative is to be woefully out-competed.