This evidence suggests that the observed downsizing has not been effective either in disciplining staff or imparting a clearer focus to activities.
Who said it: Marc Goergen, Cardiff University; Noel O’Sullivan, and Geoff Wood, University of Sheffield
Context: The quote above comes from an academic study entitled Private Equity Takeovers and Employment in the UK: Some Empirical Evidence. The study which we heard about via FN explores 73 acquistions by buyout firms to determine the validity of the idea that downsizing improves productivity. The results of the research tend to say that when it comes to companies acquired by PE firms the results are not what one would think. FN said that the report, is likely to add fuel to the debate over private equity returns and employment levels. Various attempts to quantify the industry’s performance in this regard have been inconclusive.
Where we found it: SSRN