Be careful of misaligned incentives though. A PE invested in a company (not a software company) I worked with recently, the PE placed execs and those execs proc

Be careful of misaligned incentives though. A PE invested in a company (not a software company) I worked with recently, the PE placed execs and those execs proceeded to: - professionalize the company by switching everything to SAP and outsourcing all IT to India (and from our interaction with that company in India, they didn't chose a very good company) - increase revenue in the sort term by devaluing the brand - lower the quality of products through cost saving As a result after 2 years, the company sold to one of its long term partner for double the price of the valuation the PE invested in. Since the increase of revenue was done though temporarily dumping inferior products, the revenue is now slightly below the levels before the PE investment. Customers loved the company before and would evangelize for their products. Now it's no longer the case, a lot of customers have turned on it and openly criticize it. And most of the execs the PE brought in were either fired by the new acquirer or resigned to move on to new opportunities. So, were the execs the PE brought in bad hires? No, they succeeded in the PEs objectives. Were they good for the company? Not in the long term but, in the short term, they helped the founder get a very good exit (although the founder is pissed because it taints his legacy).