4 ms·
Pardon me, but isn't this the standard operating procedure for leveraged buyouts of "inefficient" businesses? Cut expenses to the bone, resulting in a higher p
by mcguire 4y ago
Pardon me, but isn't this the standard operating procedure for leveraged buyouts of "inefficient" businesses?
Cut expenses to the bone, resulting in a higher profit margin on the same revenue, coast on that revenue while dismembering the business for anything valuable, and then load any transferable debt to the carcass and declare bankruptcy?
- boppo1 4y agoWell yeah, except he's talking about bringing back Vine, which is incongruous with the typical LBO strat. Before reels or tiktok or stories or shorts, there was vine and people loved it. But it didn't make any money.
- Sparyjerry 4y agoYep, literally every company that ever buys another company look to streamline it. In every single case where they say 'no layoffs planned,' just means they are waiting until they actually own the company and do the research to decide when layoffs will be.