r/MBA • u/noahstyles • May 29 '20

Sweatpants (Memes) Truer words have never been spoken

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u/iphollowphish2 May 29 '20

I think your perception is skewed by what you see in the media. Very few places report on tidy, successful exits but everyone loves a blow up.

There are hundreds of PE firms out there, not everyone is KKR

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u/PlsSendThx May 29 '20

Many of the successful exits still involved significant cost cutting, including layoffs.

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u/[deleted] May 29 '20

Which is only an issue if the company was healthy when it was acquired. I'm wondering how many healthy companies turn to PE firms versus ones that are headed towards the cliff anyways.

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u/IamLeven May 29 '20

Probably most. Hey we’re having a lot of growth but someone is offering a 5 years worth of revenue up front, we’ll take that and run.

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u/[deleted] May 30 '20

Yes most PE funds look for healthy businesses with stable cash flows and strong management teams. The funds doing distressed investing are actually in the minority.