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For an audiocast with Chris Ros- brook of Edgeview Partners, visit www.metalcastingdesign.com.


changes, its customers have a right to be concerned about the direction of the business. But just because the company coming in represents the interests of private equity doesn’t mean the change will be for the worse. “We have purchased two other


companies over the past three years, [and they] have grown at a double-digit pace,” Pollock said. “The fundamental business disci- plines we install work.” According to Gilbert, a strate-


gic buyer like a private equity firm brings synergies, strategies, capital and core competencies in helping businesses grow. In some cases, the numbers bear that out. Accord- ing to a 2007 report by accounting firm Ernst & Young, in 80% of the cases studied, employment levels at private equity-owned companies were the same as or higher at the conclusion of the investment than at the beginning. The firm found in 2008 EBITDA grew at an aver- age annual compound rate of 16% among a global sample of private equity investments exited in 2007, 6% better than the public bench- mark of 10%. “I think sometimes people think


there is some kind of mystery or hidden factor when you get into private equity. There’s not,” said Doug Grimm, who was installed as chief executive officer of Grede Holdings LLC, Novi, Mich., in February 2010 when the assets of legacy Grede Foundries and Cita- tion Corp. were merged under the same umbrella by private equity firm Wayzata Investment Part- ners, Wayzata, Minn. “Everyone’s going after the same thing. People are looking for value, just like any other company.” 


Mar/Apr 2012 | METAL CASTING DESIGN & PURCHASING | 31


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