Rewriting the Rules for Buyouts - New York Times:
"MANAGEMENT-LED buyouts, by their very nature, are meant to benefit management and their private equity backers,” Stephen Lowey, a lawyer who often represents institutional investors, said to me last week. He contended that public investors almost always get cheated, and it’s not hard to see what he’s talking about."
The article goes on to give some prescriptions that might level the playing field some. These include having more minority say in deals, more independenet advisors. Which are nice ideas, but undoubtedly difficult (impossible?) to enact.