After an acquisition, it’s natural to seek out ways to tighten the balance sheet and make operations more efficient. Based on my experience with private equity firms, this involves integrating new processes with teams that might not be comfortable with dramatic change. Legacy companies are often old-fashioned, and they’ve never had anyone shake things up in a meaningful way.
To earn a quick return on investment, PE firms push to create efficiencies and increase profitability in a tight timeframe. Turnover in the C-suite is often a given, and you have to balance that out by finding ways to position the company for rapid growth — a task that has shifted thanks to evolving technologies.
Read the full article on PEHub here.