How Private Equity Undermines Businesses and…

In today’s discussion, I’m joined by Megan Greenwell, a former top editor at Wired and Deadspin, to explore her latest book, Bad Company: Private Equity and the Death of the American Dream, which is set to be released on June 10th. This compelling narrative goes beyond the impact of private equity on struggling businesses to reveal how it fundamentally alters the lives of everyday Americans.

The show Decoder delves into the frameworks that shape tech, policy, and business, and we’ve covered private equity multiple times. Its pervasive influence on the business landscape often remains obscured, despite its significant role in shaping company operations.

Once you recognize its presence, however, you begin to see it everywhere, and it’s remarkably affirming to learn that many others share similar experiences with private equity-owned companies. Our audience engagement reflects this, as evidenced by our highly popular 2023 episode featuring attorney and author Brendan Ballou discussing his book, Plunder, which focuses on private equity.

Megan’s interest in this topic was sparked by her time as editor-in-chief at Deadspin, the well-known sports and culture site. Following its acquisition by the private equity firm Great Hill Partners, Deadspin experienced significant micromanagement, which highlighted to Megan the disconnect between the motivations of private equity firms and those of the businesses under their control.

In her book, Megan offers an in-depth examination of the private equity sector, breaking it down into four key areas of the economy: retail, media, housing, and, arguably the most frustrating, healthcare. Coming from a family with many doctors, I’ve heard firsthand about the ways private equity has reshaped healthcare in the United States. Megan effectively links the financialization of healthcare to the negative experiences many people face within the system.

We also explored the history of private equity, tracing its roots from New York City’s real estate scene that helped launch Donald Trump to the current state of the private equity industry. There’s a surprising amount of history that sheds light on how financial incentives have come to dominate American society, permeating even the upper echelons of government. Additionally, Megan makes a clear distinction between private equity and venture capital, highlighting the stark differences and the distinct sets of challenges they present.

I always relish conversations with fellow editors, especially when they’re tackling intriguing topics. I’d love to hear your thoughts on this episode; I suspect you’ll have plenty to share.

If you’re interested in learning more about what we discussed during this episode, check out the links provided below: