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If this were commonly true, who are the dumbasses buying companies from private equity funds, and why would they continue to buy them? And, whether your stateme
by listenallyall 4y ago
If this were commonly true, who are the dumbasses buying companies from private equity funds, and why would they continue to buy them? And, whether your statement is true or not, why should I (or anyone else) feel bad for anyone who would buy back a company that has been gutted and has no future? This is business, people are supposed to be professional and to differentiate opportunity from disaster.
Lastly, "Cutting long term viability for short term gains." actually sounds somewhat noble. Why should a company exist for 50 years when all of its usefulness (i.e. profit) can be extracted in 5? Let everyone move on to something else productive. If you owned an oil well you could exhaust in 5 years, you'd do it, not sip at it for the next 50.
- youngtaff 4y agoOther PE funds… it gives the original fund a way out and typically a gain to show for it while bumping the problem to the next fund Was an article about this in the Financial Times recently
- listenallyall 4y agoSince people hate PE funds so much (after all, they are usually led by billionaires), why is there so much despair over one PE fund selling another PE fund a lump of garbage? I'd think many people would celebrate.
- youngtaff 4y agoBecause the PE partners get to take their profit from the first sale And whoever invested in the second fund, which for example may be your pension scheme, is left carrying the cost
- selimthegrim 4y ago>If you owned an oil well you could exhaust in 5 years, you'd do it, not sip at it for the next 50. a) why when you can hold back and affect the price b) this logic had better change soon or we are all screwed with climate