Private equity associations that concentrate on
investing in companies in crisis supply their
targets with the funds and the and management
support necessary to perform a turnaround. As these
investors focus on companies in critical situations,
they have to pay special attention to the selection
of their targets to avoid unnecessary risk.
Furthermore, while traditional private equity
investors follow a passive hands-off approach
regarding their investments, turnaround investors
actively intervene in the management of their
targets. Throughout this paper, the target selection
of turnaround private equity associations is
presented as a process of three stages. In addition,
this paper details the methods and strategies used
to ensure a promising development of the selected
companies. The theoretical framework is backed by
practical insights gained from interviews with
private equity professionals.
investing in companies in crisis supply their
targets with the funds and the and management
support necessary to perform a turnaround. As these
investors focus on companies in critical situations,
they have to pay special attention to the selection
of their targets to avoid unnecessary risk.
Furthermore, while traditional private equity
investors follow a passive hands-off approach
regarding their investments, turnaround investors
actively intervene in the management of their
targets. Throughout this paper, the target selection
of turnaround private equity associations is
presented as a process of three stages. In addition,
this paper details the methods and strategies used
to ensure a promising development of the selected
companies. The theoretical framework is backed by
practical insights gained from interviews with
private equity professionals.