Poor management persists because shareholders aren't willing to do anything about it. The private equity business is built around taking over companies and doing what shareholders should have gotten done, while they keep most of the money for themselves. The amazing thing is that the same shareholders who do nothing to affect change at a poorly managed company before a private equity firm comes in to take over, pay a stupid multiple for the company when it comes public again.
Source: Value Investor Insight's Words of Wisdom
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