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This seems like a very cynical take of how private equity optimization works, it may be true in some instances, but it hardly universal as you seem to be implyi
by cupcakecommons 3y ago
This seems like a very cynical take of how private equity optimization works, it may be true in some instances, but it hardly universal as you seem to be implying. There is often a tremendous amount of low hanging fruit for businesses run by individuals that is easy to replicate across businesses and industries. Focus areas like implementing basic accounting and administrative systems are often at the core of optimizing a business when you do it professionally. These things almost always add value and are entirely rational from a market perspective.
- pjmorris 3y ago> These things almost always add value and are entirely rational from a market perspective. From the perspective of efficiency for the ownership, yes. However, every laid off staff member still needs to eat, house themselves, and pay their other bills. It seems to me that the long run effect, apart from good or bad intent, is that the people in society who don't have access to capital wind up having to manage at a subsistence level.