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Private Equity Can Make Firms More Innovative

Harvard Business Review

And a recent working paper out of the Dusseldorf Institute for Competition Economics ( DICE ), a think tank of sorts, focuses on the latter by exploring whether leveraged buyouts (LBOs) make firms more innovative. PE investors don’t typically invest in firms known for innovation. 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. This expertise may include restructuring debt, increasing financial leverage, clarifying strategic priorities, increasing productivity, implementing rigorous operational systems, or heightening accountability for results.

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