How private-equity owners lean into turnarounds

Proponents of PE further argue that management incentives, strong board governance, and a concentrated shareholder base are critical for long-term success. PE governance provides clear advantages during tough times, as well as the less tangible benefits of active board leadership and direct owner ac...

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Bibliographic Details
Published inThe McKinsey quarterly
Main Authors Kazimi, Hyder, Tan, Tao
Format Magazine Article
LanguageEnglish
Published New York McKinsey & Company, Inc 01.01.2016
Subjects
Equity
Private equity
New York
United States > US
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Summary:Proponents of PE further argue that management incentives, strong board governance, and a concentrated shareholder base are critical for long-term success. PE governance provides clear advantages during tough times, as well as the less tangible benefits of active board leadership and direct owner accountability. [...]we tracked performance for the six quarters after the first quarter when a company’s EBITDA turned negative versus the average profitable quarter for the 12 months preceding distress.
ISSN:0047-5394