To build on my last sentence about principles. They have the same goals. The reason the private equity firm is needed is because of the experience to have done it successful many times and liquidity individuals normally don't have.

 

Think of any success story of a business in the last 20 years, now how many can you name who did it without private equity.

For me, I think government has already intervened in all of this and has skewed the incentives badly. Government therefore was likely the origin of the problem and therefore might be the solution as well.

 

They've made it more advantageous to rip and run on assets than to build and maintain a company in the long term and I think that's what doomer was getting at when he started the thread.

 

Goes back to the original point. Bad businessman and decisions lead to the possibility of this happening. If the business was successful and run well much harder to be "raided".