article thumbnail

Corporate Governance Should Combine the Best of Private Equity and Family Firms

Harvard Business Review

Mars invested in China not only with a long-term purpose and commitment, but also with a clear medium-term strategy that was not swayed by short-term setbacks. In addition to the hybrid alternative, Western governance models are being challenged by a mutation of the classic private equity–leveraged buy-out model.

article thumbnail

Private Equity’s New Phase

Harvard Business Review

In phase one (buy and sell), PE investors looked for the equivalent of a “fixer-upper house” — a dilapidated company in a good industry that could be purchased at a discount and, after the business equivalent of some fresh paint and new appliances, resold for a profit.

LBO 8