I am getting into M&A, which is what PE do, and I don't even need to read the article to know it's bs.
In essence, the PE firm's goal is to consolidate multiple companies, make them work as efficiently as possible, by sharing resources and utilize the best processes, and then either operate them for increased profit or sell them off for good multiples of earnings, because they have added value to it, so someone else can run it from there on with less headache and no more need to put these efficiencies in place. There is nothing bad with any of this. In essence, it's about bringing efficiency into the market and getting paid for doing so.
My experience has been that once a small business is snatched up by a firm, customer service goes out the window and the focus on efficiency leads to a marked decline in overall quality. I'm sure it's all gravy for the people making money though.
If decline in service goes up, the people at the top most definitely feel it. It is actually multiplied by the fact that it is consolidated. So it is exponential.
The problem with ->big<- PEs is that they usually do not care too much. They usually have 5y exit plan, no matter what. If they are managing other people's money, like pension funds and whatnot, they usually do not care because they already got their fees. So yes, it can become a problem over time. Large PE firms simply gobble up every good deal they can so it is quantity over quality. But then, this can happen with small shop anyway. With PE it might be more exaggerated due to the scope but that's just the market. It bares what it financially can and it does not matter how big or small a business is if the management is lacking.
But even big PE firms can be good managers. So again, it is circumstantial and not something that can be generalized.
There are always bad apples. But those apples, once they make their bad name, they will go out of business sooner or later because other people will know of them and to avoid them.
In essence, the PE firm's goal is to consolidate multiple companies, make them work as efficiently as possible, by sharing resources and utilize the best processes, and then either operate them for increased profit or sell them off for good multiples of earnings, because they have added value to it, so someone else can run it from there on with less headache and no more need to put these efficiencies in place. There is nothing bad with any of this. In essence, it's about bringing efficiency into the market and getting paid for doing so.