Diary

Should You Buy Companies in Red States or Blue?

Should You Buy Companies in Red States or Blue?

An intriguing article in the November Harvard Business Review finds that private equity buyout performance in the U.S. is strongly influenced by the political orientation of the acquired company’s home state – or, at least, was throughout the ’80s and ’90s. The authors report that buyouts in “red” Republican states outperform buyouts in “blue” Democratic ones.