Even from NY Times...
In Tough Times, Private Equity Saves Jobs
Even the White House finds them useful to keep troubled companies going: http://online.wsj.com/article/SB1000...330597966.html
http://www.forbes.com/sites/ciocentr...-about-growth/
Private Equity Isn't About Greed; It's About Growth
But politics makes people not worry about facts to slander their opponent.
Indeed, his appeal to authority is annoying and he types arguments like a child, but at the same time, holme's comment isn't based in fact. It's a Big Lie Technique - keep repeating a campaign slogan and it becomes "true" to their followers, regardless of simplicity inaccurately portraying reality.
Private equity is not about running successful businesses, it's about bailing out companies that have lazy management, missed the shifting business environment, or got stomped by competition. Investment opportunities generally exist because the business screwed up somehow and PE is the people who come in and pick up the mess, instead of it crumbling completely. Successful businesses might pay for consultants to come in and tell them how to run better or avoid issues... and PE is the wealthy clean up crew when shit has already hit the fan. Sometimes hard decisions need to be made - but mostly because they weren't made by the company's management before problems arose.
In Tough Times, Private Equity Saves Jobs
Moody’s data shows that such companies are much less likely to be liquidated when the going gets tough. It turns out that private equity does more to save the jobs of workers at struggling companies than other types of owners do.
Most surprising, if a private equity-owned company defaults on its debt, it is half as likely to be liquidated as its counterparts. The Moody’s report notes that “a much higher percentage of bankrupt LBOs were acquired or emerged from bankruptcy instead of being liquidated.” When companies are acquired or emerge from bankruptcy, jobs are much more likely to be preserved than when the enterprise is liquidated.
There is no doubt that the debate over whether private equity creates more jobs than it eliminates will continue until the November election — and beyond. This is a debate worth hearing, given the importance of private equity in our economy. However, the Moody’s report should put an end to the “destroyer of companies” slander of private equity, but we’ll see.
Most surprising, if a private equity-owned company defaults on its debt, it is half as likely to be liquidated as its counterparts. The Moody’s report notes that “a much higher percentage of bankrupt LBOs were acquired or emerged from bankruptcy instead of being liquidated.” When companies are acquired or emerge from bankruptcy, jobs are much more likely to be preserved than when the enterprise is liquidated.
There is no doubt that the debate over whether private equity creates more jobs than it eliminates will continue until the November election — and beyond. This is a debate worth hearing, given the importance of private equity in our economy. However, the Moody’s report should put an end to the “destroyer of companies” slander of private equity, but we’ll see.
http://www.forbes.com/sites/ciocentr...-about-growth/
Private Equity Isn't About Greed; It's About Growth
Recent political attacks against private equity firms portray them as “vampire” capitalists that suck the life out of businesses and leave a slew of unemployed in their path. This is simply misleading and a gross misrepresentation of actual facts.
Private equity helps produce strong companies, promotes innovation and spurs job growth. Private equity funds a substantial amount of new businesses and is the source of capital to rejuvenate failing businesses, which are major drivers of job growth in this economy. Millions of jobs have been created at companies like Domino’s Pizza, Staples, Macy’s and Toys “R” Us, all of whom depended on the leadership and capital from private equity firms. In fact, private equity firms invested more than $144 billion in 1,702 U.S.-based companies in 2011.
There is no denying that downsizing can happen when a company receives private equity funding. It is unfortunate and hard on everyone who is affected. But the part that isn’t being talked about by many on the left is that these cuts happen most often for the survival of the company. The alternative is to continue to over spend until the business goes bankrupt and all the employees lose their jobs. These difficult decisions are critical to grow the company and grow jobs. I know this for a fact, having restructured and grown two companies into significant enterprises that created thousands of jobs and billions of dollars of shareholder value.
[...]
Bashing private equity, stifling business with regulations, trying to drive economic growth with trillions of dollars of government spending and over taxing success is like killing the golden goose. Instead, we should enthusiastically support major sources of private-sector high-quality job growth like private equity, have a more balanced approach to regulation and encourage business formation with a tax policy that encourages investment and innovation.
Private equity helps produce strong companies, promotes innovation and spurs job growth. Private equity funds a substantial amount of new businesses and is the source of capital to rejuvenate failing businesses, which are major drivers of job growth in this economy. Millions of jobs have been created at companies like Domino’s Pizza, Staples, Macy’s and Toys “R” Us, all of whom depended on the leadership and capital from private equity firms. In fact, private equity firms invested more than $144 billion in 1,702 U.S.-based companies in 2011.
There is no denying that downsizing can happen when a company receives private equity funding. It is unfortunate and hard on everyone who is affected. But the part that isn’t being talked about by many on the left is that these cuts happen most often for the survival of the company. The alternative is to continue to over spend until the business goes bankrupt and all the employees lose their jobs. These difficult decisions are critical to grow the company and grow jobs. I know this for a fact, having restructured and grown two companies into significant enterprises that created thousands of jobs and billions of dollars of shareholder value.
[...]
Bashing private equity, stifling business with regulations, trying to drive economic growth with trillions of dollars of government spending and over taxing success is like killing the golden goose. Instead, we should enthusiastically support major sources of private-sector high-quality job growth like private equity, have a more balanced approach to regulation and encourage business formation with a tax policy that encourages investment and innovation.
Indeed, his appeal to authority is annoying and he types arguments like a child, but at the same time, holme's comment isn't based in fact. It's a Big Lie Technique - keep repeating a campaign slogan and it becomes "true" to their followers, regardless of simplicity inaccurately portraying reality.
Private equity is not about running successful businesses, it's about bailing out companies that have lazy management, missed the shifting business environment, or got stomped by competition. Investment opportunities generally exist because the business screwed up somehow and PE is the people who come in and pick up the mess, instead of it crumbling completely. Successful businesses might pay for consultants to come in and tell them how to run better or avoid issues... and PE is the wealthy clean up crew when shit has already hit the fan. Sometimes hard decisions need to be made - but mostly because they weren't made by the company's management before problems arose.
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