Abstract

Private equity has become a huge force in American business, but how is it creating value. The paper shows that private equity firms in recent years have paid high prices for acquired companies, leveraging them up, and then hoping to sell them to someone else. Doubts are raised as to whether this is a good strategy for investors or the nation.

Recommended Citation

Platt, Harlan D. (2009) "The Private Equity Myth," Journal of Business Valuation and Economic Loss Analysis: Vol. 4 : Iss. 1, Article 7.
DOI: 10.2202/1932-9156.1065
Available at: http://www.bepress.com/jbvela/vol4/iss1/art7