Private-equity ownership is more focused on shareholder value than public company ownership.

Question

Quizplus · Accepted Answer

Private-equity firms invest in companies with the aim of improving their financial performance and increasing shareholder value. They operate under fewer regulatory constraints, which allows them to focus on maximizing profits for their investors. On the other hand, public companies have a broader range of stakeholders to consider, including shareholders, employees, customers, and the public, which can sometimes lead to a more balanced approach to value creation.

Private-Equity Ownership Is More Focused on Shareholder Value Than Public