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Private Equity Can Make Firms More Innovative

Harvard Business Review

At the same time, there are certain ways LBOs can actually make it easier for firms to invest in the long term. And it’s not as though public corporations are being praised for their long-termism—they’re also subject to shareholder pressure for short-term earnings. that didn’t undergo buyouts.

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Private Equity’s New Phase

Harvard Business Review

This phase was loosely called leverage buy out (LBO) from about 1979 to 1990 and included over 2,000 LBOs. Leaders were driven by short-term profits and rapid action to flip the organization. The primary focus was on fixing the acquired firm through financial restructuring, dramatic cost cutting, and strategic slashing.

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