4 ms·
There is never a bad time to read Barbarians At the Gates to understand how the incentives work in these deals and to help judge for yourself whether they're go
by sailfast 7y ago
There is never a bad time to read Barbarians At the Gates to understand how the incentives work in these deals and to help judge for yourself whether they're going to work out or not.
Spoiler / Hot Take: if you're overloading the company up with debt (even cheap, short-term stuff) and taking out cash based on "revenue projections" or "realized synergies" it's probably not gonna work out so hot when the loan comes due.
- mcrae 7y agoDebt isn’t dirty. There’s a reasonable case to make for having an appropriate debt load in terms of tax shields and motivating management.