I hear this argument a lot but with all due respect, simply understanding the tech is what got them into this issue. They didn’t understand the commercial.
PE has some scars, but they don’t typically take over healthy, well run companies. They take over mismanaged companies, and refocus on the pursuit of profit that you seem to take issue with, ultimately saving the company from bankruptcy.
Eh, you had me up until the ‘ultimately saving from bankruptcy’ part. PE cares about investor return, not some high and mighty altruistic end goal no?
There are plenty of PE deals of companies no where near insolvency, where the companies just had some more juice that could be squeezed (short/medium/long term depending, but usually short/medium term). If it’s a problem if THAT ends in bankruptcy or not depends on if they are able to get sufficient positive return/exit before they get hit by any losses - seen that many times.
Because that isn’t the goal and is often not what happens?
It is purchased to make return, not to save them from bankruptcy. If it is a side effect, that’s fine, but that is not why it’s done or what the goal is no?
PE has some scars, but they don’t typically take over healthy, well run companies. They take over mismanaged companies, and refocus on the pursuit of profit that you seem to take issue with, ultimately saving the company from bankruptcy.