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> PE destroys products and culture to make money at all costs Not always true. Certainly your impression is based on something real, i.e. people like Carl Icah
by solatic 2y ago
> PE destroys products and culture to make money at all costs
Not always true. Certainly your impression is based on something real, i.e. people like Carl Icahn and other 1980's corporate raiders. But the fundamental way in which PE can add value is by forcing leadership change and removing the pressure (from public markets) to deliver better numbers every quarter, to instead make deep cultural change and deep investments in the business that will take years to pay off. One of the better examples from recent years was Dell: https://www.crn.com/news/data-center/dell-s-public-journey-from-private-equity-buyout-to-vmware-share-swap https://www.crn.com/news/data-center/dell-s-public-journey-f... .
- randerson 2y agoDell is an outlier because it it was reacquired in part by its founder Michael Dell, who was presumably motivated by pride to not destroy his namesake brand. I'm interested in hearing other PE success stories where the product isn't ruined as a result.
- solatic 2y agoBlackstone's acquisition of Hilton Hotels is another well-known success story, all the more inspiring because the LBO debt was issued in 2007, right before the 2008 recession: https://thestrategystory.com/2021/04/10/blackstone-hilton-lbo/ https://thestrategystory.com/2021/04/10/blackstone-hilton-lb...