If its bid for the Premiership succeeds CVC may seek to negotiate much tougher agreements with the RFU over the cost of releasing players to play for England rugby David Rogers/Getty ImagesPrivate equity groups raise money from investors, such as pension funds, insurance companies and wealthy individuals, and then typically buy or invest in undermanaged, underinvested or misunderstood companies and organisations that they believe may be undervalued. The game plan is then to transform these businesses by using a host of strategic and operational measures to cut costs while growing revenue and profits. Some tactics employed by private equity groups to help turbocharge the growth of companies can include: replacing underperforming management teams; appointing expert consultants to improve performance; working with company directors to refocus or overhaul the business model; selling off non-performing parts of a business; and refinancing a company’s debt. In general, private equity groups are not long-term owners of companies or organisations.

Source: The Times September 05, 2018 23:03 UTC