4 ms·
Yeah, exactly, the PE vultures come in to a bad company, carve it up (sell and refinance their assets, debt-raise to pay themselves, cut staff), extract a bunch
by agentgumshoe 3y ago
Yeah, exactly, the PE vultures come in to a bad company, carve it up (sell and refinance their assets, debt-raise to pay themselves, cut staff), extract a bunch of money and then sell and leave them for dead with no accountability.
- dmix 3y agoBut usually only if they can’t turn it into something better. Anyone betting millions on a company goes in aiming a bit higher than selling off real estate or whatever asset. That’s usually the back up plan after a short play to turn the company around. It’s just not pretty when it doesn’t and people who care about the business naturally see them as shortsighted opportunists.
- JumpCrisscross 3y ago“Private equity catalyzes the creative destructive process in the labor market, with only a modest net impact on employment” [1]. (Service and retail do worst, in terms of employment.) https://www.nber.org/system/files/working_papers/w17399/w17399.pdf https://www.nber.org/system/files/working_papers/w17399/w173...