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That's a really interesting take that you don't hear much. My view from knowing a fair amount of PE folks: PE firms are run by very smart and practical people
by hackitup7 3y ago
That's a really interesting take that you don't hear much. My view from knowing a fair amount of PE folks:
PE firms are run by very smart and practical people who understand incentives and finance really well. In many cases their incentives and the incentives of the teams they acquire align - they want the teams to be highly motivated and they understand how to use money to make that happen.
Not defending PE overall - smart and practical != nice - but PE doesn't exist just to do evil. They're bad guys in the vein of Slytherin, not Vlad the Impaler.
- lotsofpulp 3y agoIt really depends on the financing terms. If the purchase was made with too much debt, then you need to bounce as there is only one way the business’s trajectory will go. With near 0% interest rates, revenue multiples went crazy, and most of the time, the purchase price was too high to do anything other than squeeze employees and customers and try to pawn off the business on greater fools.