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

Harvard Business Review

But where they have succeeded, they have left public corporations increasingly swayed by short-term results (which are easy to measure) at the expense of future success. Typically, there is a very clear medium-term investment thesis that downplays short-term pressures, with a view to an exit within three to five years.

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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. Large private equity firms (e.g.,

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