What Happens When A PRIVATE EQUITY Firm ACQUIRES A Company

Рет қаралды 20,409

Күн бұрын

Пікірлер: 34

@aek8541 Жыл бұрын

Private equity employees generally have no clue how to run a business. They simply procure huge loans against the assets of the company, grow the hell out of the company, cut costs (not just the fat, the muscle as well) to boost EBITDA as much as possible then sell a completely battered company

@thomaseaves7567 Жыл бұрын

I worked as Commercial Finance Manager for a company that was bought by a private equity business. I was CFM for the uk business, with a circa £400m turnover, this was in the construction sector, the business as a whole had a turnover of over €6.5bn. It was quite an experience. 13 week Cash flow reports were discussed on a weekly basis, and as anyone in the construction sector will know, that weekly blips do occur, however, it really did become a war and peace, with the supporting commentary required in such micro detail. This was also, during the Carillon debacle. I feel a proper detailed drains up on that particular debacle would make the curling viewing, if anyone needs input on that, do get in touch.

@alelectric2767 Жыл бұрын

It means they are going to strip the assets and use the company as collateral to take out loans against the company. Fire non productive staff. Keep the owner around until they start pushing back then fire them as well. Not knocking it just sayin. If you’re an employee at a company that has been sold to one these firms you should start looking for a new job.

@DegenerateSpeculator Жыл бұрын

Correct

@wanderingaengus-n8w Жыл бұрын

Why would any organisation keep non-productive staff?

@alelectric2767 Жыл бұрын

@@wanderingaengus-n8w Not saying that should. Just what will it may happend

@monaoconnell5650 Жыл бұрын

I am knocking it! Private Equity are gangster accountants. We can do so much better!

@manueldouglas3435 Жыл бұрын

I saw a clip about this earlier. Bro bounce if you get acquireded

@MrAlwaysBlue 5 ай бұрын

You ignore the effect on employees. The company I work for was successful with contented employees. The shareholders sold out to PE. Pay has now dropped 25% in real terms over last six years. During this time, investors given dividends financed by the pay cuts.

@TimothyStclair-v4p 10 ай бұрын

at 6.31 misspelled running with runnig of business.

@WingBroJoseph 9 ай бұрын

Sure. City workers typically have zero clue about running companies or businesses. It's like asking a mechanic to perform surgery.

@theultimatereductionist7592 2 жыл бұрын

How does any of this help new businesses run by 1 person?

@angrydragonslayer Жыл бұрын

I feel like you're looking at this the wrong way

@joespinella7773 Жыл бұрын

Just found out my employer whom was family owned. Sold to a PEF. Im not one bit happy about it.

@Viper4ever05 Жыл бұрын

Here's what you can expect I worked for a company owned by a PEF. The CEO be replaced by some corporate asshole, he'll force all the other executives out and bring in his own team. Some managers will likely quit because they don't like the new culture and the "family business" feel will be gone completely. Some layoffs might happen and roles merged to meet business needs. The company will be burdened by massive debt and the expenses will explode, making them even more antsy to grow the company, leading to high turnover if people don't produce results. I would seriously think about leaving when you start feeling the culture changing.

@paulpurdue5963 10 ай бұрын

Blueprint steps for fraud