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Very recent example: Instant Brands. Arguably one of the most popular new markets for kitchen appliances in recent memory. Brought electric pressure cookers and
by tonyarkles 3y ago
Very recent example: Instant Brands. Arguably one of the most popular new markets for kitchen appliances in recent memory. Brought electric pressure cookers and countertop convection ovens (ahem air fryers) into the public consciousness in a way no one else has. Purchased by private equity in 2017, now filing for bankruptcy.
You're probably right about big public corporations and institutional investors. But PE firms don't have the the same incentives; their incentive is often to squeeze as much ROI as possible out of the companies they purchase, consequences be damned. You're mostly right though on this part:
> Companies that sacrifice the long term for short term profits have their stocks tank and go out of business.
Or they file for chapter 11 bankruptcy and let someone else pick up the pieces, while destroying a good business and leaving a bunch of people unemployed.
- deleted 3y ago[deleted]