Private equity takeovers which back management buyouts tend to create jobs at the companies being bought, a report by an economic think tank has claimed.
But The Work Foundation adds that when a private equity group installs a new management team, the firm's workforce and pay are likely to be reduced.
Private equity groups use a mixture of their own money and debt to buy firms which they feel are underperforming.
They usually look for a profitable sale within three to seven years.
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