The private equity invasion

You may have only a vague idea of what 'private equity' means, but there's a good chance that if it's not touching your life yet, it soon could be.

Just take a look at some headlines from the past few days:

Healthcare giant Bupa has agreed to sell its hospitals business in a private equity deal worth £1.44 billion.

At the same time, union leaders have voiced their concern about the proposed sale of Jaguar and Land Rover marques to - you guessed it - private equity firms.

Meanwhile this week some of those private equity companies will be getting a grilling from a Parliamentary committee.

All this because in the last few months a number of well known companies including the AA, Bird's Eye, EMI and more recently Alliance Boots have all been taken over by private equity firms.

The critics of these take-over bids say the equity firms pay lower taxes and threaten jobs and pensions of those working for the companies.

The sector argues that the firms improve performance of the companies and is good for the economy.

What do you think? Is it good for the economy to have private equity firms taking over loss making companies and turning them into profitable enterprises?

Or do you think they asset-strip companies and threaten the jobs and pensions of the employees?

Join Sarah Dickins and guests as they examine the private equity invasion on Wales@Work, Tuesday 19 June at 6.32pm and repeated on Sunday 24 June at 7.03am.


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