Private Equity in Trouble: How Sweet It Is

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  Mike T K03/27/08 Report as spam
  1

  All PE firms are not the same...

  It is easy to take pot shots at powerful and high-flying leaders that stumble at a peak. However, not all private equity investors are the same. The buyout shops that have been in this business for more than 10-15 years and have created value through turnarounds do create true economic value.
  
  On the other hand, transactional firms that entered the market more recently or played more heavily into it as momentum or speculative investors are the ones you are portraying in this article.
  
  Good private equity investors bring great strategic ideas, operational discipline and focus, and long-term growth capital. In our book, BIG Ideas to BIG Results (FT Press / Pearson Hall) we highlight several examples of private equity turn arounds and tools and approaches that all companies should use to drive growth. There are positive lessons to learn from private equity investors.

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  invictallc03/27/08 Report as spam
  2

  Profiting on Privitization

  That is definitely true, you have seen companies looking to exploit other companies that might be in hot water temporarily. Then they use their leverage to improve the finances temporarily and then derive a portion of the value of that company through the fees. It's their business model, so it's not something hidden. It is just like check cashing places that use exorbitant fees.
  
  Asif Ahmed
  www.heliobusiness.com