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> Think about it, if a business is fairly priced and well run, PE firms have no incentive to buy it because where do they generate returns? PE has access to bu
by sa46 1y ago
> Think about it, if a business is fairly priced and well run, PE firms have no incentive to buy it because where do they generate returns?
PE has access to business models unavailable to the original owner.
- Buy all local dentist clinics at an enticing markup then increase rates.
- Buy businesses and migrate them to tech where the PE firm holds an advantage. For example, a PE firm that runs its own payment gateway.
- Buy a business that complements a larger business to reduce churn or increase sales.
- bfg_9k 1y agoRight, which implies that the business was not run well, or at the least didn't reach its full potential.