The following article, written by John Grafer, principal at Satori Capital, was featured on Inc.com by the Inc. Business Owner’s Council.
Do private equity firms deserve your distrust? Some do. They invest in your company, strip out costs, pursue short-term results, and flip your company to the next owner as soon as possible to maximize returns for their investors regardless of the consequences for the other stakeholders; the employees, the customers, the suppliers, the community, and you. Employees may be under-compensated, customers may feel like they didn’t receive what they paid for, suppliers may believe they were taken advantage of, the community may be unhappy with your practices, and you may end up feeling like you work for the man.