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Saying they turn companies around is being generous. They typically don’t buy companies that are in the dumps, they buy companies that are humming along and mig
by prklmn 9y ago
Saying they turn companies around is being generous. They typically don’t buy companies that are in the dumps, they buy companies that are humming along and might have room for improvement, cut expenses by firing employees, raise debt, and try to put the company in a good enough position to meet debt obligations. I wouldn’t credit them with turning too many companies around. If anything they are “turned around” from the debt laden messes that Bain creates into something the company looked somewhat similar to before the buyout.
- mywittyname 9y agoThey actually did turn around Toys R Us after acquiring it. In 2005, they were digging out from yet another failed attempt to reinvigorate their brand (which peaked in the 90s). They made strides in the late 00s with a big push into online, but growth stalled as competition from other retailers grew.
- whatok 9y agoSo if these companies are "humming along" why are they selling to Bain? If they're doing so great, why doesn't someone outbid Bain?
- prklmn 9y agoThey sell to Bain because it’s easy, makes the shareholders happy, and the board and executives get rich from it. And to your second question, an interesting read from the FT https://www.google.com/amp/s/amp.ft.com/content/e1732e1c-fa7d-11e6-bd4e-68d53499ed71 https://www.google.com/amp/s/amp.ft.com/content/e1732e1c-fa7...