> They basically pump cash in to grow sales, They usually borrow money at really high leverage to buy the company so they risk very little of their own capital

> They basically pump cash in to grow sales, They usually borrow money at really high leverage to buy the company so they risk very little of their own capital. Then they cut anything and everything to minimize costs (and choke off the ability to compete in the future) then dump the carcass(es) on whatever suckers they can find because they made the balance sheet look better temporarily. Banks line up to lend them money because there is a never-ending supply of suckers and these firms usually manage to find one before the inevitable crash and burn.