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This is classic Wall Street private equity behavior. Use borrowed money to buy the company, loot the place, and flip it. It's pure parasitic behavior but not il
by xenadu02 10y ago
This is classic Wall Street private equity behavior. Use borrowed money to buy the company, loot the place, and flip it. It's pure parasitic behavior but not illegal.
I would advise anyone working at a company acquired by private equity to bail out ASAP. It is just a matter of time before you get screwed. Especially don't get left with a bunch of company stock.
I do wonder why creditors keep funding these PE deals and why anyone participates in their share offerings. You're asking to get taken.
- jhpankow 10y agoWhat about Dell?
- keytapper 10y agoHere is where I am struggling with... did the venture guys actually make money in this case or did they make such a balls of it that they actually lost significant amounts of their own money? Would they have 'Looted' the place by paying out bonus to themselves as employees, could they have done this to such an extent that over time it covered the initial capital they put in to take Avaya over?
- zump 10y agoIt happened here in Australia to a beloved electronics store brand. https://foragerfunds.com/bristlemouth/dick-smith-is-the-greatest-private-equity-heist-of-all-time/ https://foragerfunds.com/bristlemouth/dick-smith-is-the-grea...