Absolutely, 100%, unequivocal YES! Hindsight is 20/20, right? We merged our dental practice with a large PE backed group. We completed our DD off of the information that they provided; there is not a lot of public information available for PE. Turns out they were overleveraged, acquired underperforming assets, and they had insufficient capital reserves. When dentistry in the USA was shutdown for the pandemic, they had to do a major recapitalization to avoid folding. A lot of equity partners lost a lot of money, we most likely will not receive the final installment of our subordinated note, and I am now part of a team trying to improve performance.
It is going to be an expensive lesson to learn!