Sometimes acquisitions and mergers carried out by portfolio firms are frowned upon by industry observers. According to them, mergers or acquisitions prevent a company from surviving on its own. However, as a flipside to this argument, it can be said that equity investment firms help a company that is cash strapped or lack funding to survive. In other words if a company is unable to perform at par due to lack of funding, it can consider an equity investment firm. Often the portfolio company invests in the business or initiates a merger and in certain cases acquires the business itself. Nevertheless, the business activities carried out by an equity management firm is essential for the overall welfare of an economy.
According to the Managing Director of American Technology Group, Miles Arnone MA, acquisitions and mergers often aid in the overall economic growth. Arnone a graduate from the Massachusetts University of Technology prides himself in being able to identify good business investments. Arnone, has worked throughout North America, China and Taiwan before joining American Technology Group in 2002. He is also associated with a number of other firms in capacities as a member of the board of directors, advisor or even manager. Some of the companies that Arnone is associated with are, Aeriform, Avalon, eLynx, Escort, ECA, Next Point Systems, IMT and many more such firms.
According to Miles Arnone MA some of the business activities carried out by equity investment firms that can promote economic growth are as follows:
Thus, it can be safely concluded that portfolio companies, venture capitalist and equity investment companies play a crucial role in ensuring the survival of a company and the overall economic growth of a nation.