Is private equity ruining small businesses across America?
We've seen both sides. Owners walking away with life-changing money, and others watching the companies they built lose employees, customers, and culture.
The difference often comes down to the investor and what happens after the deal closes.
Recently, we examined the good, the bad, and how private equity is changing the service industry.
Some investors follow a familiar playbook: acquire businesses, consolidate operations, cut costs, and sell at a higher valuation.
That approach can generate impressive returns, but it can also destroy what made a business successful.
We recently heard from someone whose company was acquired. Less than two years later, only two original employees remained.
But not every investor operates that way.
Some take a longer-term approach, investing in employees, technology, and growth. And not every change under new ownership is bad. Better systems, accountability, and performance standards can make a business stronger.
We're also watching technology-focused investors enter traditional service industries. For example, the discussion around Thrive Capital and ADT highlights how AI could reshape operations, reduce administrative costs, and create competitive advantages.
The question is whether those improvements make life better for customers and employees or simply increase profits.
Our takeaway: If you're considering selling your business, look beyond the purchase price. Understand the investor's goals, timeline, and plans for your team.
The biggest check doesn't always mean the best deal.
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