4 ms·
Why? It's a model that's worked successfully for decades, though you forgot 1a Have the company take on debt to pay for the takeover. It's also ridiculously de
by NeedMoreTea 8y ago
Why? It's a model that's worked successfully for decades, though you forgot 1a Have the company take on debt to pay for the takeover.
It's also ridiculously destructive and abusive to all except the asset stripper.
- i_feel_great 8y agoWhy do others hang on when they see this coming, if they stand to lose?
- parrellel 8y agoRampant bullshitting.
- narrator 8y agoTo be fair, it also benefits the people who buy the assets if they paid a good price for them.
- aedron 8y ago"Leveraged buyout". I.e. borrow cash to buy out a company, using the company's own assets as security for the debt. Gotta love these innocuous sounding financial engineering terms. Barbarians at the Gate is a classic business book about such a case (the takeover of RJR Nabisco).