Comment by darkwater
3 hours ago
But that's how it is supposed to be. You "just" need to have a system that incentives banks and small entrepreneurs to take on that risk, and makes it not a good investment for PE.
3 hours ago
But that's how it is supposed to be. You "just" need to have a system that incentives banks and small entrepreneurs to take on that risk, and makes it not a good investment for PE.
What makes that system rare is that there's a buyer who knows the business available. The new owner needs to understand the industry and convince the bank that they know how to run it as a successful business. PE do their homework on the business before they buy it and don't have to convince the bank that they know what they are talking about. The neighbors son isn't usually an expert on the your business.