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Cerberus sort of hinges on "a guaranteed amount of much less profit" vs "we might profit, or we might completely lose our investment". They're not "investors",
by DiabloD3 6y ago
Cerberus sort of hinges on "a guaranteed amount of much less profit" vs "we might profit, or we might completely lose our investment".
They're not "investors", they're predatory vultures. However, given that, their model does work, even if it is immoral and short-sighted.
- nipponese 6y agoThat's well-said. I think it's worth adding that it's a highly resonate argument against modern capitalism.
- refurb 6y agoCan you share the details you're referring to? Cerberus is Private Equity, so as far as I know, those details of the deal aren't public.
- DiabloD3 6y agoI can only point to the public knowledge of the outcomes: either, under far stricter management, the new company alienates workers and long time customers... or, those companies do not survive, and are stripped down for their valuable assets and debtors get as little as possible due to bankruptcy. People describe companies like Cerberus sort of like the undertaker of companies in a capitalist society, but I don't entirely agree with that metaphor.