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One objective, two methods: the pros and cons of retaining incumbent management

There has long been a schism in private equity between those firms who seek to back incumbent management teams when acquiring a business and those who like to bring in new management expertise.

Guy Hands, chairman and chief investment officer of buyout firm Terra Firma, once said that in more than 90% of his firm's investments, they had made significant changes to the management team post-acquisition.

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