Dan Primack has a great article today called “The Private Equity Firm that Trusted Too Much.”
It’s the sad story of private equity firm General Atlantic taking the role of shareholder rep and in doing so, acquiesced to an $8 million dollar claim without doing any research to see if it was valid.
What next? Well, of course everyone ended up in court and there was a settlement. Read Dan’s article for the nitty gritty.
Why would anyone take this job? Your upside is that you get to work a lot for free and no one even takes you out to dinner to thank you.
Worse case is well…. this, getting sued (as I’ve done) or spending way too much time with lawyers.
This “public service announcement” brought to you by Shareholder Representative Services.*
(* Actually not brought to you by anything. I just like saying that since they are friends of mine and I’m an advisor to the company. But use them, anyways).