Although technology is more "risky" than other MARKETS, remember that there are mature, cash flow-stable COMPANIES in almost every industry. There are some PE firms that specialize in very specific goals, such as:

• Industry consolidation - buying competitors in a similar market and combining them to increase efficiency and win more customers.

• Turnarounds - taking struggling companies and making them function properly again.

• Divestitures - selling off divisions of a company or taking a division and turning it into a strong stand-alone ENTITY.

So EVEN if a company isn't doing WELL or seems risky, the firm might buy it if it falls into one of these categories.

Although technology is more "risky" than other markets, remember that there are mature, cash flow-stable companies in almost every industry. There are some PE firms that specialize in very specific goals, such as:

• Industry consolidation - buying competitors in a similar market and combining them to increase efficiency and win more customers.

• Turnarounds - taking struggling companies and making them function properly again.

• Divestitures - selling off divisions of a company or taking a division and turning it into a strong stand-alone entity.

So even if a company isn't doing well or seems risky, the firm might buy it if it falls into one of these categories.