Douglas Battista: Why Private Equity Firms are Important

Douglas BattistaRunning a business is no easy task and one made even more difficult in a competitive market. Many entrepreneurs lack business acumen and do not know how to properly manage their organization, even if they have a great product. Here, operations expert Douglas Battista explains the importance of private equity firms, a type of investment entity often discussed in the media.

Q: How does private equity work?

Douglas Battista: Essentially, a private equity firm is a group of investors that pool their money together to provide working capital for new or underperforming companies. The investors gain equity in the company and earn a profit only when the business’ performance improves.

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