In 2005, a fierce discussion raged over the question whether private equity companies make money by firing people or whether they really create value. Dr. Oliver Klockner and I conducted the most comprehensive study on this topic by that time. Despite data restrictions, we concluded that despite job cuts in some companies financed by private equity, the general effect on employment was positive, net of all losses. Employment growth was particularly dynamic in bought-out family businesses and exceeded growth in all other types of companies backed by private equity companies. When presenting...
In 2005, a fierce discussion raged over the question whether private equity companies make money by firing people or whether they really create value....
