#privateequity

Sell off company assets, assume lots of debt, the board pulls out tons of money in special payouts and destroys the company. Verizon is right on track. Get out before the real crazy begins.

Sycamore Partners doesn't care about you. This is only the beginning, and will only get worse. Sycamore Partners bought Staples in 2017. You should check out their layoff page if you want to see what kind of stress and uncertainty is going to continue for you. It's disheartening and seriously not worth it. Best wishes to you all.

Private equity will put the final nails in the Verizon coffin. Hans did his job for Blackrock.

This is all Clearlake Capital pushing things in the direction that works for them. It'll get worse. But, rest assured, no matter what happens Clearlake will come up on top. Private Equity always wins and unfortunately we were done for the moment they came in. This is just a gradual decay that needs to be sustained until Clearlake Capital extracts whatever they decided to extract. After that, sale, spin off, IPO, etc.

I saw this today via a Google alert.

"Market attention recently turned to ongoing reports about DXC exploring strategic alternatives. Some analysts have noted renewed takeover interest from private equity groups, which likely stirred price volatility and new speculation about its true value."

https://finance.yahoo.com/news/investors-reassess-dxc-technology-takeover-050450354.html

SB in response to one of the canned questions; "it's impossible to forecast quarter to quarter for Wall Street". Wait, what?!!! I thought that is your job. Then he followed with a telling slip of the tongue; "That's why companies go private and can come back out on the other side". He's done a yoemans job of plowing the share price into the ground and now he's hoping for a buyer to execute the plan his boss Carl brought him in here to do in the first place.

Seems to me going private would allow us to accelerate towards goals.

SAP bid twice but failed to acquire BlackLine in 2024 and 2025...maybe SAP will eventually succeed due to PE investors in BlackLine!
https://www.globalbankingandfinance.com/blackline-m-a-sap-three/
https://www.marketscreener.com/news/germany-s-sap-mulls-new-bid-for-software-firm-blackline-sources-say-ce7d5ddfdd8af324

This comes after SAP's acquisition of SmartRecruiters to compete against Workday which has taken away bulk of its business in HCM domain!

Saw they sold to private equity...what happened after FDS invested? Not a good fit?

There will be announced mass layoffs and consolidation plans within a week from now. Underperforming BUs will be restructured or sold and 1000’s will be laid off across the enterprise.

This is first roll out of changes due to Elliott Managment,

Thank you Geoff Martha! Elliott management would have never bought into MDT if you never took over the CEO spot! Enjoy your huge parachute package.

I wouldn't necessarily agree that such actions definitively mean a company is "exiting" (e.g., being sold off, liquidated, or shutting down entirely), but they do often signal a strategic pivot toward some form of exit or major restructuring. Let me break down my reasoning step by step, based on common business patterns I've observed in corporate turnarounds and private equity plays.

### 1. Hiring a CEO with a Track Record of Selling Companies

• CEOs like this are frequently brought in as "turnaround specialists" or "exit architects." Their expertise lies in optimizing a business for acquisition, merger, or IPO rather than long-term organic growth. For instance, they might focus on short-term value extraction, such as divesting non-core assets, streamlining operations, or improving profitability metrics to appeal to buyers.
• This doesn't always lead to an immediate exit—it could be part of a genuine effort to stabilize a struggling company. However, in mature or distressed firms (e.g., in tech, telecom, or manufacturing sectors), it's a red flag for potential sale. Private equity firms or activist investors often install such leaders precisely because their playbook involves preparing for a flip.

### 2. Mass Layoffs Followed by Voluntary Layoffs

• Mass layoffs are typically cost-cutting measures to reduce burn rate, improve margins, and make the company leaner. In the context of a new CEO with an exit-oriented background, this can be about "rightsizing" the workforce to boost EBITDA (earnings before interest, taxes, depreciation, and amortization), which is a key metric buyers scrutinize.
• Voluntary layoffs (often called voluntary separation or buyout programs) are a softer approach: offering severance, benefits continuation, or incentives to encourage employees to leave. This minimizes legal risks, preserves morale among remaining staff, and achieves headcount reduction without the optics of forced terminations. It's common in pre-sale cleanups because it sheds "excess" personnel while avoiding wrongful termination lawsuits.
• Together, these steps can indicate distress (e.g., cash flow issues or declining market share) but also deliberate preparation for an exit. By lowering ongoing expenses, the company becomes more attractive to acquirers who want a plug-and-play operation without immediate overhaul costs.

### 3. Does This Always Mean an Exit?

• Not necessarily. Some companies use this playbook for survival and rebirth. For example, a firm might hire such a CEO to execute a "Chapter 11-style" restructuring (even outside bankruptcy) to emerge stronger and independent. Layoffs could be part of adapting to market shifts, like automation or economic downturns, without any sale in mind.
• But often, yes—it leans toward exit. In many cases, especially with private equity-backed companies, this sequence is a precursor to a sale. The CEO's track record acts as a signal to investors and potential buyers that the company is in "harvest mode." Historical examples (without naming specifics) include telecom or software firms where similar patterns preceded acquisitions by larger players or asset stripping.
• Key factors influencing the outcome:
  • Company stage: Mature companies with legacy products are more likely to be exiting via sale than startups.
  • Market conditions: In a buyer's market (e.g., during economic booms), this setup facilitates quick flips. In recessions, it might just be belt-tightening.
  • Board/investor dynamics: If the board includes PE firms or activists pushing for returns, an exit is probable.

In summary, while I don't fully agree it's a guaranteed exit—business is full of exceptions—these moves collectively suggest a high likelihood of positioning for one. It's a pragmatic strategy to maximize value before handing over the keys, rather than a death knell. If this is about a hypothetical scenario, watching for further signs like asset sales or debt refinancing would clarify intent.

Electronic Arts (EA) was recently bought out by a consortium that is made up of Saudi Arabia's Public Investment Fund (PIF) and Jared Kushner's Affinity Partners investment firm for $55 billion. Now, a union representing EA workers has publicly opposed the sale and privatization of the company, saying employees weren't properly represented during the sale negotiations.

The statement names the United Videogame Workers-CWA Local 9433, along with the Communication Workers of America (CWA), as now very concerned that the privatization of EA will lead to company layoffs. The union states EA is "not a struggling company," with "annual revenues reaching $7.5 billion and $1 billion in profit each year".

https://www.tweaktown.com/news/108308/ea-workers-fight-back-union-slams-dollars55-billion-saudi-backed-buyout/index.html

It's hard to imagine any positive scenario for the worker now that Sycamore is in the driver's seat. Private Equity is brutal and anyone in bed with PE will go through multiple cycles of pain and tears. At this point we'll have to see how small of an org Sycamore wants as they are only interested in milking cash flow and paying off the loans they took to buy us (and they will do it with our own money). I think I know how this will play out, it's the same old playbook - get a loan, buy a company, pay off the loan with loans the acquired company takes & milk cashflow, improve cashflow by cutting cost and labor, spin off or sell the company. PE gets rich and everyone else gets fu---d.

In a surprising turn of events, industry insiders are whispering that Dell Technologies might be weighing its options for a potential sale. While no official statements have been made, sources close to the matter suggest that preliminary conversations with private equity firms and potential strategic buyers have quietly begun behind closed doors.

Dell, a long-standing giant in the PC and enterprise hardware space, has seen its business evolve dramatically in recent years. With growing competition, ongoing market shifts, and recent volatility in tech stocks, some speculate the company may be exploring ways to unlock shareholder value or streamline its sprawling operations.

Fueling the rumor is Dell’s relatively quiet stance on recent earnings calls regarding long-term strategic plans, as well as unusual movements in its stock price and insider activity. Some analysts believe a sale, or even a significant restructuring, could be part of a broader strategy to respond to tightening margins in hardware and the growing dominance of cloud-native infrastructure providers.

Of course, without confirmation from Dell or involved parties, all of this remains speculation. Still, in an industry known for its rapid consolidation and bold moves, the possibility of Dell being up for sale is one worth watching closely.

Stay tuned.

Hi, I'm at Walgreens. What support center jobs/departments were hit with the layoffs the first year of Sycamore Partners buying Staples? Appreciate the insight of where I could be in the chopping block.

Walgreens plans to exit its space at Chicago’s Old Post Office, though its headquarters remains in Deerfield, the company confirmed Monday — news that comes shortly after the sale of Walgreens to a private equity firm.

Walgreens will leave the massive, riverfront structure in January, as the company aims to “renew our focus on our stores and customer experience,” said spokesperson Fraser Engerman.

“Our commitment to serving communities across the country begins in our pharmacies and retail locations, and this decision reflects our continued prioritization of those investments,” Engerman said.
Engerman declined to say how many employees now work at the Old Post Office. But Walgreens moved many of its digital and IT employees there in early 2020, making it one of the first tenants in the building after it was renovated into an upscale office property.

Office Depot SOLD Will Go Private in $1 Billion Deal with Atlas Holdings.
https://tonernews.com/forums/topic/office-depot-sold-will-go-private-in-1-billion-deal-with-atlas-holdings/

Just some food for thought regarding Glenview capital. Remember in the deal they made with CVS, they got 4 seats on the board. (In addition to obviously getting the CEO replaced as well) That said, with four seats on the board of directors, they want more than just a seat at the table, they want a say in how the company is operated. Glenview is private equity, remember that. Look at Walgreens getting bought out by private equity and already Sycamore has wasted no time making cutbacks. It might explain everything that’s happening right now at CVS. Private equity is behind the scenes calling the shots. And private equity is all about money and profits and maximizing value for investors, at all costs, and nothing else.

https://finance.yahoo.com/news/tgt-target-stock-pops-takeover-161641769.html

Walgreens was just purchased by Sycamore. I just read a news article that says Target is also being looked at by private equity firms as well! Are all retail stores pretty much doomed at this point. Wow.

Factors influencing the buyout speculation:

Potential for an attractive acquisition price: Target's stock has been trading near a six-year low, which could make it an attractive and affordable target for a private equity firm.

Change in CEO: The recent announcement that CEO Brian Cornell would be replaced by company insider Michael Fiddelke is thought to have added to the speculation.

Mixed financial results: Despite reporting "better-than-feared" second-quarter earnings, the company's recent results failed to produce a sufficient recovery in its share price.

Previous buyout rumors: News outlets reported on buyout speculation back in late 2024, following disappointing earnings results.

Mini-tender offer: In September 2025, Target received an unsolicited mini-tender offer from TRC Capital Corp., though this offer was for a small portion of the company and not a full buyout.

Mergee with a Private Equity Firm! That to me means lay off and draining what's left after the BP Subsea contact termination! We're all sc--wed!

Norlin is beginning his firing frenzy. He’s getting pressure from KKR and he refuses to take accountability that account alignment was mismanaged, and quotas were improperly set. Some reps need to grow territories 6o7 times previous years revenue, while some make their numbers from standard uplift from one renewal. He’s unquestionably the laziest and most worthless manager I’ve ever seen

Just calling it now. Don't act like private equity magically cares about the employees. They care about the rights to the IP. They'll only keep the bare minimum number of employees needed to pump out sports titles lol.

More than 70% of the Sycamore deal is financed through debt, meaning that the private equity firm doesn’t have “much skin in the game,” according to Parr. The risks of bankruptcy are especially troubling, according to the Private Equity Stakeholder Project. In the first quarter of this year alone, 70% of large U.S. corporate bankruptcies involved private equity-owned companies, despite private equity making up only 6.5% of the economy.

https://www.reuters.com/sustainability/sustainable-finance-reporting/office-depot-parent-be-acquired-by-atlas-holdings-1-billion-2025-09-22/

Expect even more layoffs down the line. That’s Thoma Bravo’s modus operandi: lay off people, wait a bit, then cut even more, rinse, and repeat. It’s all about money now. If they can get you to do the work of three people for the pay of one, they will. And if you leave, they win again because they didn’t have to pay severance. I know. I’ve been through a Thoma Bravo acquisition.

https://www.newyorker.com/magazine/2025/09/01/how-a-billionaire-owner-brought-turmoil-and-trouble-to-sothebys

Sold to private equity firm to Thoma Bravo and lots and lots of layoffs.

This is what happens... for Nielsen it will be slower since there is no customer facing product but the end result will be there nonetheless...

BTW, did you ever trust David Kenny, his only job while you were bursting your a-s was to sell the company to the highest bidder, making himself and investors a lot of money out of your hard work!

https://www.youtube.com/watch?v=FCbJuZewjak

Not everyone is excited about the deal. The Private Equity Stakeholder Project, which bills itself as a watchdog organization rooting out the impacts of private investment, said in March it was “very wary” of the deal, noting several of Sycamore’s portfolio companies have filed for bankruptcy.

The watchdog group further noted that Sycamore appears to be paying for the acquisition mostly using debt, which could leave Walgreens financially vulnerable down the line.

What a sellout, how sad.

The recent CEO and Board are a bunch of cowards plain and simple. Total lip service and many even bought that lip service. Look what has happened. Beyond a sad day for many people. They say the only constant things in life is change and paying taxes. But change doesn' t mean to sell out to VULTURES. You FAILED as leaders ...but what do you care. You get a lot of money..That is what is it all about right. But also many of you voted for this. You RUINED a respected... what was once a pretty good company. A fact is a fact. Just terrible.

You think you’re working with a skeleton crew right now? Think again. They will cut everything beyond the bare bones and still try to cut more. There will be closures, position eliminations, layoffs, and everything you can imagine to minimize expenses, regardless of the impact on employees. You’ll be expected to do the work of five or six people and be happy about it. That’s private equity for you.

Not just a new CEO, but Sycamore also named a new EXECUTIVE chairman John L. For those unaware an executive chairman has more power and authority than a regular chairman of the board. Executive chairman has a lot more say over day to day operations of a company. And essentially the CEO reports to the executive chairman. Plus like most boards they tend to operate behind the scenes, as opposed to more out front like a CEO. Get ready for virtually no transparency. Plus on a side note, no mention of Stefano's role in the new company.

No more diabetes... no more Sean Salmon: Blackstone proponent... can we rid Backstone and other toxic private equity from extracting the value out of the best growth opportunities?

If private equity will fund a program, shouldn't we? Will more Blackstone proponent heads finally roll?

DONT DO IT. They dont want to pay out severance and are going to do things to break morale to get "voluntary attrition". Dont give them the satisfaction. Start building your network now to prepare for when the inevitable comes, and have a game plan for when it does.

Tracey Brown has been let go. The Sycamore chainsaw begins.

what do you think?

Good luck boys,

• TW

Fire GM will ya!