CEPR

Book Talk: 'Private Equity at Work: When Wall Street Manages Main Street'

Category : General
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Presented by Eileen Appelbaum, Center for Economic and Policy Research
Rosemary Batt, ILR School, Cornell University

Private equity firms have long been at the center of public debates on the impact of the financial sector on Main Street companies. Are these firms financial innovators that save failing businesses or financial predators that bankrupt otherwise healthy companies and destroy jobs? The first comprehensive examination of this topic, Private Equity at Work provides a detailed yet accessible guide to this controversial business model. Noted labor experts Eileen Appelbaum and Rosemary Batt carefully evaluate the evidence--including original case studies and interviews, legal documents, bankruptcy proceedings, media coverage, and existing academic scholarship--to demonstrate that while private equity firms have had some positive effects on the operations and growth of small and mid-sized companies, the interventions of private equity more often than not lead to significant negative consequences for many businesses and workers.