23 April 2018
How private-equity owners lean into turnarounds
PE-backed companies outperformed public peers when recovering from distress across a multi-year study.
PE-backed companies outperformed public peers when recovering from distress across a multi-year study.
The best private-equity boards create value via leverage, strategy and operations improvement, and higher-multiple exits. Incentives, governance and concentrated ownership matter.
A comparison of 659 PE-backed versus public enterprises over nine years amid commodity distress found that PE-backed companies outperformed public peers when recovering from distress, even accounting for higher bankruptcy risk.