Small(er) businesses can be poorly run. In theory private equity takes knowledge already in practise in other locations and shares it with this new location, improving results. Downside of course is that they care a lot less about that specific location than the previous owners would have.
One specific practise I’d like to see banned is private equity buying companies with debt the company then assumes. It staggers me that it’s legal.
I’ve literally never seen that happen. what does always happen is cutting ‘non essentials’ that are essential until the company implodes.
> One specific practise I’d like to see banned is private equity buying companies with debt the company then assumes. It staggers me that it’s legal.
What alternative are you imagining?