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That's why my guess was going to be: "financialization" ... buy the company, profit like crazy by selling it assets and taking on debt, cut R&D budgets, cut mar
by jppope 3y ago
That's why my guess was going to be: "financialization" ... buy the company, profit like crazy by selling it assets and taking on debt, cut R&D budgets, cut marketing, provide fat compensation for C-suite and board... bankruptcy ~5 years later after someone else is holding the bag. The playbook is practically as American as baseball these days. Even more so when tax payers get to pay for the bail out.
tbh I should probably get with the times and start doing it myself, at some point the music will stop and there won't be any companies left to rob blind...
- another2another 3y agoI still weep for Boots the Chemist in the UK that this happened to. They used to be a great British company.
- kristopolous 3y agoIt's the Jack Welch dance. https://www.simonandschuster.com/books/The-Man-Who-Broke-Capitalism/David-Gelles/9781982176426 https://www.simonandschuster.com/books/The-Man-Who-Broke-Cap...
- dbg31415 3y ago"Cornell Capital... Founded in 2013 by Senior Partner Henry Cornell, the former Vice Chairman of Goldman Sachs’ Merchant Banking Division..." https://cornellcapllc.com/ https://cornellcapllc.com/
- OscarCunningham 3y agoIt seems like the plan of private equity is always to leave creditors holding the bag. So why in the first place do creditors lend to any company at reasonable rates without assurances this won't happen?
- killingtime74 3y agoThe rate is the assurance. Charge more if you think the risk is high
- linuxftw 3y agoThe creditors are people's 401k's. The debt that gets issued is sold off to 'fund managers' that help enrich their friends. Until there's a law passed preventing retirement plans from forcing you into only a handful of funds, it's never going to stop.