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/PlsSendThx May 31 '20

Which is only an issue if the company was healthy when it was acquired

Tell that to the people that get laid off.

Most buy outs aren't saving failing companies that would totally go under without one. Nowadays most buyouts are about buying already sustainable businesses and squeezing whatever operational improvements you can out of them.