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Cirque du Soleil

Unknown
PE-OWNED

World-renowned theatrical circus entertainment company.

PE-OWNED

Acquired by TPG Capital2015-04-01

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What Made It Great

Revolutionary circus arts combining acrobatics, theater, and music.

What PE Will Likely Do

Cirque du Soleil will experience a decline in the quality and innovation of its theatrical productions

HIGH LIKELIHOODBased on: TPG Capital's track record of aggressive cost-cutting and debt loading in acquired companies

The company will reduce investment in new show development and instead focus on cost-cutting measures

HIGH LIKELIHOODBased on: The typical playbook used by private equity firms in the retail industry, including dividend recapitalization, store closures, and deferred maintenance

Cirque du Soleil's unique combination of acrobatics, theater, and music will become diluted as the company prioritizes cheaper, less ambitious performances

HIGH LIKELIHOODBased on: The negative consumer impact score associated with TPG's tactics

Ticket prices for Cirque du Soleil shows may increase while the overall spectacle and creativity declines

HIGH LIKELIHOODBased on: The precedent set by other Cirque du Soleil and entertainment industry acquisitions that have resulted in bankruptcy

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Cirque du Soleil will announce plans for 'operational optimization' and 'strategic changes' to improve profitability

6-12 monthsYOU ARE HERE

6 to 12 months months

The company will begin closing down or scaling back underperforming shows and touring productions

12-24 months

12 to 24 months months

Consumers will notice a decline in the technical and artistic quality of Cirque du Soleil performances, with fewer new shows and more reused or simplified routines

24-48 months

24 to 48 months months

Cirque du Soleil may struggle to maintain its signature high-production value, with potential delays or cancellations of major new shows

48-60 months

48 to 60 months months

The company could face financial difficulties or even bankruptcy if the cost-cutting measures severely damage the Cirque du Soleil brand and consumer appeal

What You Can Do

Actions

  • Be wary of any announcements about 'transformations' or 'optimizations' at Cirque du Soleil, as these are often code words for cost-cutting measures

  • Expect to see a decline in the quality and innovation of Cirque du Soleil shows, with less ambitious acrobatic feats, less elaborate sets and costumes, and a less immersive theatrical experience

  • Consider purchasing tickets for Cirque du Soleil shows in the near future, as the company may increase prices or reduce the frequency of performances as a cost-saving measure

  • Stay informed about Cirque du Soleil's financial situation and be prepared to voice concerns or seek alternative entertainment options if the company's quality and artistic integrity continue to deteriorate

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

Share this company's PE status

"Cirque du Soleil is now PE-owned. Here's what that means for you."