5 ms·
In respect to Sea World the more realistic strategy is either run at a minor loss until the real estate is profitable or squeeze dry ASAP and sell. Or the timel
by xzel 5y ago
In respect to Sea World the more realistic strategy is either run at a minor loss until the real estate is profitable or squeeze dry ASAP and sell. Or the timeless play of load it with debt, payout themselves and declare bankruptcy.
Of course there are other PE businesses that are ran with only minor changes. I have a friend whose firm invests in dermatology offices and has created a network of small offices nation wide. From my understanding they really do try to keep the same staff on and mostly do back office changes but that’s his word so take it for what it is. I personally find large scale PE work pretty soulless but there are definitely firms that care about the companies they take over.
- eru 5y ago> Or the timeless play of load it with debt, payout themselves and declare bankruptcy. Well, as long as they sell the bonds only to consenting adults, what's wrong with that?
- njarboe 5y ago"consenting adults" By that did you mean "the Fed"?
- eru 5y agoNo, I did not mean the Fed. Why? The Fed mostly buys government debt, don't they? Have they recently taken to buying private equity debt?
- njarboe 5y agoThey started buying them during the pandemic but, looking into it in more detail, it looks like it was only a few tens of billions, so not that much.
- Frondo 5y agoThis model is not good for society as a whole.
- eru 5y agoWhat do you mean? Some people prefer riskier investments. Let them have it. Other people prefer safer investments, let them have what they want, too. There's nothing inherently sacred about bonds. It's just a contract that basically says 'either we pay you x dollars on time, or you get to take ownership of the company'.