Which of the following is NOT a common outcome of private equity improvements in a target company?

The focus on private equity improvements is primarily on enhancing the performance and competitiveness of a target company, and the correct answer highlights an outcome that contradicts this goal.

Private equity firms typically invest in companies to optimize their operations, which often entails streamlining existing processes, improving employee morale through better management practices, and introducing new product lines to expand the business and boost revenues. An increase in inefficiencies, however, runs counter to the common objectives of private equity interventions, which aim to reduce waste, enhance productivity, and ultimately improve the bottom line.

The presence of streamlined operations ensures that resources are used efficiently, while improved employee morale is crucial for fostering a productive work environment. New product lines can help in capturing greater market share and diversifying offerings, making them essential components of a company's growth strategy post-investment. Hence, the idea that a private equity improvement strategy would lead to increased inefficiencies is clearly misaligned with the typical outcomes expected from such an investment.