I just finished reading a piece on Bloomberg about Colt - the gun manufacturer - filing for Chapter 11 bankruptcy, and the piece somewhat shocked me. Colt is a 179 year old business and one of the legacy corporations of America. Shocking on many levels - one that such an old and legacy company should fail, and second that the Private Equity firm that holds Colt made this happen through bad financial re-engineering, and over-leveraging it to breaking point.
Jobs will be lost, the company will be shaken up, and lives will likely be disrupted. And all for what? there was no value aggregation, no overall improvement of lives of the people in it, and in fact, quite the opposite.
We want to challenge traditional private equity business models and develop one where there can be a win for all - for the community, for the employees, for the stakeholders, and for the government. Can it be done?
Jobs will be lost, the company will be shaken up, and lives will likely be disrupted. And all for what? there was no value aggregation, no overall improvement of lives of the people in it, and in fact, quite the opposite.
We want to challenge traditional private equity business models and develop one where there can be a win for all - for the community, for the employees, for the stakeholders, and for the government. Can it be done?
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