This article is entirely too gauzy and obsequious for private equity and glosses over the actual DAMAGE done by PE firms especially when using leveraged buyout tactic.

Imagine I want to buy your car. I do so and then put my borrowed money on your credit card!

LBO have destroyed numerous businesses in recent years. Private equity firms do target companies that may be struggling. The PE firm borrows the money, puts the debt ONTO the company they bought, adding to its difficulties. The company now must drastically cut costs. For companies in the service or retail market, this leads to layoffs of staff, which means poor and poorer customer service which leads to consumer dissatisfaction creating a downward spiral.

In addition to having to service more debt, the struggling company has to pay the PE firm "management fees."

These PE firms using leveraged (borrowed money) have NO risk in the game- they already got their money back and get more with the fees. They are nothing but VULTURES creating no value or productivity.

It is true that the struggling companies MIGHT still have failed- or they could have become more successful with a blend of online marketing as well as physical locations. Or re-vamped their product offerings. But we will never know because the vultures picked at them until they were just a carcass.

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