A merger might be, even though TCV still might not recoup its investment. It isn't only the need for cash that comes up for debate, however. In fact, even more time is spent by partners debating how and where to find chief executives, financial officers, programmers and business-development talent for portfolio companies. But these days, experienced executives are as rare as gold dust, and partners plead with each other for leads. And staffing mistakes can be costly.
Valuations come up for discussion, too.
Only months ago, TCV was doing deals at a rapid pace, and now the partners are worried that in some cases they may have paid too much. Only time will tell, but the partners responsible alert their colleagues to the deals that, in hindsight, look costly and thus might be harder to generate big returns. I think he's going to be a big money-maker for us. But I wish he hadn't made me pay this valuation. They aren't in the business of managing mature businesses, and the pension funds and other institutions that invest in TCV's funds want profits realized and distributed.