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by twoodfin 104 days ago
Why did the phone provider sell to a private equity firm?
1 comments

for the money presumably? This questions feels like you're actually making a cryptic statement but I don't understand what it is.
Usually companies that have a fantastic, growing business model don’t sell to PE.

I also don’t like it when a money-losing business stops giving me below-market pricing.

- Phone subscriptions is a price competitive market in most places, not some growth-hacking industry.

- Not every business has a growth story. Not every business needs a growth story.

PE can offer a business owner more than they expect it to make by:

- being ignorant about the business (Which we are seeing repeatedly)

- intend to run it hot to juice the numbers and resell it for their profit.