What Happens When A PRIVATE EQUITY Firm ACQUIRES A Company

What is the first thing that a private equity firm does after acquiring a company?
Private equity investors used to be berated for their treatment of companies they acquired.
They would often take on too much debt, lay off workers and sell the company's most valuable assets.
Nowadays, the industry has changed a lot.Now they have a specific plan to make the business they acquire more valuable.
Listed companies have a more challenging time executing this strategy due to the pressure of meeting shareholders' diverse expectations and managing market speculation.
The most essential point to remember is that today's private equity firms aim to improve a firm's value via strategic and operational improvements.
#privateequity #companyacquisition #mergersandacquisitions
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[@chriswalter92]

Private equity sounds like a mechanism that extracts the most amount of value from a business, and transfers that wealth to the few general partners. Everyone loses - the business, the employees, the local consumers, the tax payers.... except for the general partners

[@tahirisaid2693]

The people you’re claiming don’t benefit wouldn’t have benefited with or without the private equity buyout. The business was failing before private equity came in, they just more efficiently manage the end of the companies life. Most likely allowing most companies to work there longer than they would have been able to do before.

[@aek8541]

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]

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.

[@user-nq8vm2iv9v]

at 6.31 misspelled running with runnig of business.

[@alelectric2767]

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]

Correct

[@bjk8901]

Why would any organisation keep non-productive staff?

[@alelectric2767]

@@bjk8901 Not saying that should. Just what will it may happend

[@monaoconnell5650]

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

[@manueldouglas3435]

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

[@theultimatereductionist7592]

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

[@angrydragonslayer]

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

[@joespinella7773]

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

[@Viper4ever05]

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]

Blueprint steps for fraud

[@joblakelisbon]

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

[@actionjack4096]

He makes destroying my business sound WONDERFUL....

[@solonkazos1379]

I invented a new jet engine. It will cut fuel use in half. Who should I talk to about that?

[@jakewalton9521]

Me

[@francisarinze6928]

Sequoia Capital

[@johnmourer5747]

No one. The entire airline industry will be at your door. Including jet engine manufacturers.That's if you have a pattened and your story is real.

[@solonkazos1379]

@@johnmourer5747 you'd think what you said was the truth, but those airlines don't even return calls.

[@raydziesinski7165]

This is nothing but a lipstick on a pig promo for the PE gang.

[@sojibrajii]

Hi, Are u need attractive KZbin thumbnail designer?

[@4skipp700]

This is bullshit PE propaganda 😂