[Analemma_]

I agree, although there’s a lot of selection bias at work here: companies usually don’t get bought by private equity unless they’re already in distress, so whatever they were doing before the acquisition clearly wasn’t working.

[fn-mote]

C.f. Private equity entrance to the veterinary market. Were they all really distressed? The issue is valuation of company vs underlying assets, isn’t it? Distress is one way, but a solid company not squeezing all of the value out of its customers / capital is another.