While equity companies have been known to strip value, if you look at the customer base of Warren, they will not put up less quality or service. If you read about Pritzker, they tend to hold family owned businesses.Its not uncommon when equity firms buy a company they drain it of any value, cheapen the product and dump it. It may be prudent to stay clear of their products until it is sure the quality is not taking a hit.
Private Equity Deals Can Destroy Companies, Communities and Countries
Private equity deals put money make huge profits for the acquiring firms, often by destroying the companies they invest in.www.thestreet.com
In my more intimate experiences, no, but that is limited.has a leverage buyout ever resulted in quality remaining the same?
That assumes the buyers are more interested in maintaining the current customer base than trying to expand beyond the market they already are successful in and appealing to the largest market (people who only care about price).While equity companies have been known to strip value, if you look at the customer base of Warren, they will not put up less quality or service. If you read about Pritzker, they tend to hold family owned businesses.
has a leverage buyout ever resulted in quality remaining the same? Usually the company is bankrupt in a couple of years. Sad
It was a leveraged buyout according to Forced.Did the article state it was a leveraged buyout
I was in the Semi robotics for a few years and every single one is gone now, or owned by the bigger Japanese parents. Most of the people I used to work with are now in the medical equipment industry.Consolidation is the name of the game. Winners and losers. The only constant is change.
When I started in Semiconductor Manufacturing, there were well over 100 companies.
Now it's Applied Materials, Lam Research and KLA-Tencor, plus a very few far smaller players.
And the smaller players are owned by a parent.
LBO are usually the worst. They make money buying, load up with debt, then sell it to the next sucker to hold the bag, then the sucker end up with a struggling business and try to squeeze it even further and the whole house of card falls apart.It was a leveraged buyout according to Forced.