Kitty explains private equity

Kitty explains private equity. Kitty is a successful investor and has a lot of cat food saved up. Instead of using it to buy cat toys or a private island, Kitty wants to put it to work to make even more. He could invest in stocks or bonds, but Kitty thinks that he can generate higher returns by purchasing a company and growing it. Kitty decides he will buy multiple small cat toy companies and combine them into one, also known as a roll up. He uses V7 Go, the workflow automation platform for private finance, to automate the document workflows that private equity runs on to help speed up the due diligence and deal process. He optimizes pricing and cuts unnecessary costs to increase product margins. And since he is combining multiple companies, he starts ordering inputs in bulk, combining duplicated administrative tasks, and sharing knowledge across the companies to help them run better, also known as realizing synergies. Kitty is a financial genius he feels. Problem, Kitty is old and wants to retire. Kitty decides to sell the business and sells it for more than he bought it for. So not only did Kitty make a profit on the sale, but he also collected all the profit the cat toy company made in the years that he owned it.