Conclusion on Private Equity Essay Example | Topics and Well Written Essays - 1000 words

Conclusion on Private Equity - Essay Example After the buyouts, the private equity firms are able to manage the companies in to making profits, after which they are sold to other investors. The private equity firms do a financial refurbishment of the companies facing a crisis. The Private equity firms also rebuilt the financial structures so that the companies get the ability of becoming productive financially. The major aim of the private equity firms is to make substantial returns to investors and to make their profits from the capsizing companies (Cendrowski, 2011 p89). The Blackstone Group is firm that deals with private equity it is based in America in the New York state. The investment company has got interests in vital businesses across the world. Blackstone is one of the largest firms that deal in a leveraged buyout transactions. They also have an interest to the real estate sector more so the commercial real estate business. The company is able to buyout a failing company, restructure the management of the company, put in a few investors and then they are able to turn around the financial status of the company in remarkably little time. The firm will then take out profits in the form of commissions that are deducted for the management of the company, and they also charge a performance fee that they will use to quantify their profits. The Southern Cross Healthcare is among the top companies that provides healthcare to the United Kingdom community. The Southern Cross have specialized their health care to care for the elderly people and those suffering from mental health in the residential and long term nursing homes. The Southern Cross business is also specialized in offering health care services to people who are suffering from brain injuries, and psychiatric issues. The company owns more than one hundred and sixty homes. Southern Cross was faring well under the management of John Moreton until the buyout of West Private Equity and Health care investments came along. Blackstone acquired Southern C ross by a buyout that was done in 2004 for a tune of ?162 million. They operated more than one hundred and sixty two homes whereby a majority of the homes were leased. Blackstone then put down its management skills on Southern Cross and invested in the company to make it one of the best health care providers in the United Kingdom. They also managed to acquire the Nursing Home Properties which were put under Southern Cross; this increased the portfolio of Southern Cross and made the health care provider become the largest health care provider in the United Kingdom. Later in 2005, Blackstone also acquired the Ashbourne Group which they also included in to the portfolio of Southern Cross. This still increased the financial credibility of Southern Cross, and this was at the same time increasing the quality of the services that they were giving to the people. Blackstone acquired the Ashbourne group with the aim of increasing the quality of services to Southern Cross. So far, the manageme nt methods of Blackstone to Southern were being done correctly, and the company was raking massive profits to investors, and management of the company was also benefiting. Apart from the management and the investors benefiting, the society was getting value for their money in terms of the

Impact of decision-making in organizational performance Article

Impact of decision-making in organizational performance - Article Example From the research it can be comprehended that organizations in the modern world are complex, and many theories have been developed to explain what makes them work, and how to make them work even more effectively. A key element of organizational performance is the way that leaders make decisions, and then persuade all members of the organization to carry out these decisions in the way that is intended. The personal qualities, skills and style of a leader are all factors which can affect the way that an organization behaves. Leaders have an important role to play in any organization and they can influence the organizational performance because everyone in the organization is expected to follow the leader. Leaders should make sure that the subordinates do not only follow them but take inspiration from them. In this way there are high possibilities that employees of the organization will give maximum output and overall performance of the organization will be enhanced. Owing to the percei ved importance of the impact of leadership on performance of the organization, several research studies have been conducted in order to analyze what kinds of leadership exist, and whether there is a relationship between leadership and the organizational performance. This paper presents a critique of several recent articles on the relationship between leadership and organizational performance. ... arajan, Sonnenfeld and Srinivasan, 2006) analyzes organizational performance and identifies its relationship with the charismatic style of leaders, as well as environmental uncertainty. In addition to this, the research also identifies the perceptions of top team management about the charisma of a CEO. The authors emphasize the fact that leadership style and its impact on organizational performance has been one of the most important topics of today’s world as leaders have a key role to play in motivating everyone in the organization and ensuring that the organization performs at its optimum level. In this research article, information has been collected using both primary and secondary research methods in order to perform the analysis. In the primary research part of the article, questionnaires were filled by people in the top management as well as CEOs of different organizations to analyze the relationship between the variables discussed above. Because the article had a large sample size, 770 questionnaires were filled and returned and this means that the results shown by this research are likely to have high validity. There was a sample size of 128 CEOs from different companies and this breadth in the location of the participants is a strength of the study. Another major strength of this article is that the study analyzed organizational performance using different criteria like the return on assets, return on equity, sales growth, return on sales and stock return. These measures provide good empirical evidence on which to judge organizational performance whereas other studies previously conducted have not considered these criteria of measuring organizational performance. One of the major weaknesses of this research study is that it included only firms operating in