Cleveland Plain Dealer Highlights Local Private Equity Impact
In an op-ed published in The Cleveland Plain Dealer this weekend, David Mook, “head geek” of Ohio-based TMW Systems Inc. writes about his experience working for the company after it was purchased by private equity firm, Pamlico Capital. According to Mr. Mook, private equity was instrumental to growing and strengthening TMW for the long-term. Mr. Mook writes:
Back in 2005, Tom sold his business to Pamlico Capital, a private-equity company in North Carolina, and Peppertree Capital, a local Cleveland company. As you can imagine, all the employees were apprehensive, including me. The last full year before we sold, TMW employed around 100 people. We were afraid our new masters would cut the staff, leverage the business to the hilt, gut research and development, and do all sorts of untoward things.
But just the opposite happened. For the past seven years, Pamlico has been an outstanding shepherd of our business.
While owned by private equity, TMW grew from 100 employees to 500 employees and 2,300 customers:
Pamlico also did very well for our 500 employees and 2,300 customers. It has left our business very healthy. We’re growing at double-digit rates, and we’re hiring more people — many right here in Northeast Ohio.
Strengthening companies, like TMW Systems, is the cornerstone of the private equity business model. And TMW is not alone. It is one of 15,500 U.S.-based companies owned by private equity. These companies employ more than 8 million people worldwide.
