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Many buyouts stumble in first year

Optimistic business plans and deal fatigue can mean firms underperform in their first 12 months of private equity ownership

Many buyouts stumble in first year
Photo: iStockPhoto

More than a third of mid-market companies acquired by private equity firms underperform their plans in their first year, partly because of over-optimistic expectations and “deal fatigue”, according to a white paper by executive search firm Marble Hill Partners.

Marble Hill surveyed chief executives and other staff at portfolio companies in the UK mid-market 13 months after they had been acquired by private equity firms for its white paper, 'Getting ahead of plan'.

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