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Introduction to the Private Equity Industry and the Role of Diversification

  • Daniel O. Klier
Chapter
Part of the Contributions to Management Science book series (MANAGEMENT SC.)

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...

Keywords

Venture Capital Private Equity Portfolio Company Private Equity Fund Private Equity Investment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Physica-Verlag Heidelberg 2009

Authors and Affiliations

  1. 1.BerlinGermany

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