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My personal experience with buyouts from private equity investors is that they will milk every single cent out of the company as they crush its soul. They’re looking to make a huge profit, relatively quickly. Yes, the stock market is also looking to profit, and big share-holders have a lot of sway, but publicly traded companies don’t have to answer to a small number of ultra wealthy puppeteers in quite the same way private equity held companies do. Also, there are certain employee protections, particularly around layoffs, that apply to publicly traded companies but don’t apply to privately held companies.
This seems to be one of the key strategies in the PE playbook:
Buy the company / take it private
Slash costs everywhere, including yearly layoffs.
Push the remaining employees to adopt a “lean” or “customer first” mindset, which really means “do more work, faster, for less reward”.
Profit?
As much as I dislike Ubisoft, I don’t dislike anyone enough to wish that process upon them.
My personal experience with buyouts from private equity investors is that they will milk every single cent out of the company as they crush its soul. They’re looking to make a huge profit, relatively quickly. Yes, the stock market is also looking to profit, and big share-holders have a lot of sway, but publicly traded companies don’t have to answer to a small number of ultra wealthy puppeteers in quite the same way private equity held companies do. Also, there are certain employee protections, particularly around layoffs, that apply to publicly traded companies but don’t apply to privately held companies. This seems to be one of the key strategies in the PE playbook:
As much as I dislike Ubisoft, I don’t dislike anyone enough to wish that process upon them.
Ding ding ding. People hear “going private” and think “mom 'n pop shop”. But PE firms are vultures. Actually no, that’s mean to vultures.
How Private Equity Consumed America - Wendover Productions