[sa46]

> Think about it, if a business is fairly priced and well run, PE firms have no incentive to buy it because where do they generate returns?

PE has access to business models unavailable to the original owner.

- Buy all local dentist clinics at an enticing markup then increase rates.

- Buy businesses and migrate them to tech where the PE firm holds an advantage. For example, a PE firm that runs its own payment gateway.

- Buy a business that complements a larger business to reduce churn or increase sales.

[bfg_9k]

Right, which implies that the business was not run well, or at the least didn't reach its full potential.

[sa46]

None of those situations imply the business was poorly run.

[bfg_9k]

If they were run well, then you wouldn't be able to improve on them by buying them.

[e40]

Offerring a dentist a large amount of money (for them) to sell isn’t an indication how the business is run.