>
"There's so few industries that get touched by PE and come out better for it."Yeah, I've been observing that a few times already as well.
A bit off-topic, but:
I believe that's because there is a conflict of perspective between a company's and a PE's goal.
Both parties agree i.e. on a certain profit as the joint goal.
It's like both journeys are straight lines which cross at some point (profit!) but diverge again afterwards.
So while:
1. the company focuses on its line of becoming a successful and profitable entity, and healthy for the travel beyond that crossing,
2. the PE is on a different trajectory, focused on pulling in that crossing as fast as possible, with little care what happens beyond that point of intersection.
In my observation this can work, but only if the relationship is dissolved in-time and the company can continue its journey.
But in itself the whole concept generally gravitates toward the PE's trajectory, which leads to the company being consumed until the crossing, and ripped into pieces after it.
Yeah, I've been observing that a few times already as well.
A bit off-topic, but:
I believe that's because there is a conflict of perspective between a company's and a PE's goal.
Both parties agree i.e. on a certain profit as the joint goal.
It's like both journeys are straight lines which cross at some point (profit!) but diverge again afterwards.
So while:
1. the company focuses on its line of becoming a successful and profitable entity, and healthy for the travel beyond that crossing,
2. the PE is on a different trajectory, focused on pulling in that crossing as fast as possible, with little care what happens beyond that point of intersection.
In my observation this can work, but only if the relationship is dissolved in-time and the company can continue its journey.
But in itself the whole concept generally gravitates toward the PE's trajectory, which leads to the company being consumed until the crossing, and ripped into pieces after it.