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by erhserhdfd 1849 days ago
Many struggling technology companies will go private to all them to substantially invest in RnD. This allows then to make those expenditures without having the overhead and distractions of having to be a public company where investors are expecting short-term returns. Further, these private equity companies may then roll up several related businesses in an attempt to create synergies through sales or product.

Ultimate software is a recent example of this: https://www.forbes.com/sites/antoinegara/2019/03/01/an-insid...

1 comments

Yeah, I think there's a pretty big difference between tech companies going private (often to double-down R&D investment) and mature consumer brands going private (which is usually a way to extract profits and milk the carcass dry, see: Toys r Us, Olive Garden).
this +100. You see the later in manture enterprise software a lot more these days and it is not fun to be a part of it. You get to watch software development transition from a profit generator to a cost center, which changes the game completely.