I've turned down interviews with several companies after finding out they were PE managed. If you need the job take it, but otherwise find something with hope. After looking them up on crunchbase or the public filings, a decline on sight policy on PE owned companies has saved me a lot of time and, I think, career suffering.
Very curious how you conduct the research. I'm legitimately interested as at some point I almost accepted an offer from a company and one of my friends stopped me telling me that they're PE managed. Is there an easy systematic way of finding out without having to read public filings? How do you decide? Based on the ownership shares? Board members?
Yes, they are called "Insecure overachievers". They are the bread and butter of investment banks, management consulting firms, big law firms, etc. They are also the reason that partnerships still thrive. A couple of years ago I was talking with this (big law) partner at a dinner, and we came in on the topic around partnership - and he just said it straight: The competition / rat race towards partnership is 100% skewe…
> Prestige is a powerful motivator. I know this to be true because I've seen so many people given BS titles instead of raises and be happy about it as if they got something of real value. But I don't understand it at all. Apparently, I lack the "prestige" gene.
Some people have enough money to meet their needs, and value prestige higher.
Others may overvalue prestige.
Or maybe there are hidden benefits to it that are hard to buy (social status).
I have a pet theory: there are managerially-minded university graduates who value prestige more than power or pay. In the post-War era, they became beige-suited company men. In my generation, they went corporate finance. Today, they work for private equity. Banking was great. Everyone–from liberal arts to engineering majors–could putz around for years in a pre-defined and prestigious path with moderately above-market…
Yes, they are called "Insecure overachievers". They are the bread and butter of investment banks, management consulting firms, big law firms, etc. They are also the reason that partnerships still thrive. A couple of years ago I was talking with this (big law) partner at a dinner, and we came in on the topic around partnership - and he just said it straight: The competition / rat race towards partnership is 100% skewe…
I didn’t know that’s what we are called, but now that I see it in words, it sounds very accurate. There is a class issue, me being middle class second generation at play. With no guarantees of financial security from home but expectations of such, there is an insecure element at play. The overachievers is a bit optimistic, though. I’ve been in almost all the domains you mentioned and I would call it overtriers. I would not think overall statistically people would be making more, and if it is the same, then why is the model a bad proposition? My experience is, with partnerships, if you are not on a fast moving track in your first 5 years, then it’s time to move on. Industry is a nice place to be and there is a depth you get when directly employed that you don’t when you distance your objectives from that of your direct interactions.
Why wouldn't your friend just open up a practice and compete with this dysfunctional company?
Maybe because now that the retail vet is destroyed and rich people need vets who are not pathologically inconvenient and terrible, there is a brisk market for retained private vets. This is a trend I’ve noticed that goes along with “enshittification” wherein the normal thing (let’s take grocery stores as an example) become either so downmarket-oriented (e.g., Dollar General) or aggravating (e.g., self-checkout lanes,…
Dollar General didn’t move down market, they moved up. Still plenty of regular grocery stores around, at least here.
And who abandons the middle part of the market? The providers? The customers?
Not really making sense here but I get it if you’re just venting or whatever.
Despite the directions the interviewer tried steering this conversation into, this is a really interesting interview. But when it comes to the private equity roll-ups, I think everyone is missing the forest for the trees. If you are a doctor looking to retire and sell your business there is no one else right now who would buy it . The same goes for every category of "mom and pop" business in the US. Even if you could…
> there is no one else right now who would buy it
Their are firms that let you sell to your employees via an ESOP. One I know of (though a friend) is https://www.awcfund.com/
Yes, they are called "Insecure overachievers". They are the bread and butter of investment banks, management consulting firms, big law firms, etc. They are also the reason that partnerships still thrive. A couple of years ago I was talking with this (big law) partner at a dinner, and we came in on the topic around partnership - and he just said it straight: The competition / rat race towards partnership is 100% skewe…
> Prestige is a powerful motivator. I know this to be true because I've seen so many people given BS titles instead of raises and be happy about it as if they got something of real value. But I don't understand it at all. Apparently, I lack the "prestige" gene.
Well, you can ask yourself what is "real value". In fact, more likely than not, it's just some imaginary stuff you ascribe value to, just like "prestige".
Better than doing the same work with heavier patients in nursing homes for $12/hr.
The level of mental trauma endured by vets I doubt is matched by elderly care nurses.
One of my first jobs was in a nursing home, and lemme tell you it's a pretty shit job. Not because of the specific working conditions, or because it's not fulfilling in many ways, but because you have to deal with a lot of gross filthy stuff and a significant fraction of your patients have dementia and are terrified, violent, or both. Being a vet tech is no picnic either but on balance I'd rather deal with animals than people.
A friend of mine is a Vet at a place recently sold to a PE firm. If your wait times are crazy long, if you can't get through on a phone, if you realize your vet's office has parted ways with the great vet you used to see -- that's the PE firm counting beans and destroying the service for customers in an effort to squeeze every dollar out of the system. As a specific obviously bad example -- Vet services in California…
Why wouldn't your friend just open up a practice and compete with this dysfunctional company?
Probably because they don't want to get steamrolled by a much wealthier competitor's marketing/lobbying machine, given all the permits and certifications needed. Franchises are hard to compete with in consumer markets. I used to have a great relationship with a vet who did house calls, but most of her clients were horse owners, which is a very different market than the typical household pet demographic. I doubt she could have got by without that specialty.
This is not a stupid question. I would only guess that start up capital is not available and the market is not big enough for another practice. And all that before considering licensing. Most professions have a gulf between the wealth of business owners and workers. You can’t start a business working hand to mouth.
How to start a business without any money: https://www.amazon.com/How-start-business-statistical-bankru...
Get an advance from a publisher to write a book on how to start a business without any money?
Maybe because now that the retail vet is destroyed and rich people need vets who are not pathologically inconvenient and terrible, there is a brisk market for retained private vets. This is a trend I’ve noticed that goes along with “enshittification” wherein the normal thing (let’s take grocery stores as an example) become either so downmarket-oriented (e.g., Dollar General) or aggravating (e.g., self-checkout lanes,…