McIntosh Group purchased by PE firm

Then the alternative is to close the business.

Private equity will look to “value engineer” costs down. 

They've lived through a lot of owners and survived unscathed. I think they'll be ok.

“PE is looking for profit and a multiplier then dump. These guys will own them for 7 years max money in on 3-5. “

100%

@wturkey 

I wish you were right!  It is far far worse than you think.

PE is an evil that is destroying business all around the world.    It cares nothing for the businesses it buys nor the people in them or the products they sell.  It is simple greed.

Using as little as possible real money, it maxxes the borrowing and puts it all in the target (McIntosh here).  It bleeds the business dry of investment and capital, extracting maximum interest, dividends and remuneration so as to treble or quadruple within a few years the small amount of money invested.  McIntosh then unsurprisingly fails, leaving a carcass to be picked over by other greedy feeders operating at a lower level in the food chain.

Expect McIntosh to be bust within 5 years.

By the way....There is a remedy for this.  Put a statutory limit on the amount of borrowings that can be used to buy a company.  Say 50:50 borrowing (funny money) and real money.

And while you are at it, kill off pre-pack liquidations that simply rob creditors and make offering business credit a dangerous occupation.

Yes, the business world is filled with evil.