Introduction to the Private Equity Industry and the Role of Diversification
Once you buy a company, you are married. You are married to that company. It’s a lot harder to sell a company than it is to buy a company. People always call and congratulate us when we buy a company: I say, “Look, don’t congratulate us when we buy a company, congratulate us when we sell it. Because any fool can overpay and buy a company, as long as money will last to buy it.” Our job really begins the day we buy the company, and we start working with the management, we start working with where this company is headed.
Henry R. Kravis, Financier and Investor, Co-Founder of KKR
Chapter 2 provided the first component of the starting position for this study by establishing an understanding about the status of academic research covering diversification in public corporations. This chapter consequently outlines the second element of the starting position required for the empirical research of this contribution by introducing the private equity industry and highlighting the role of...