4 ms·
Bust out 1 and 2 are basically the Private Equity playbook. Buy a company, take on debt, buy-back stock. If possible, extract extra fees. There's a book called
by Ozzie_osman 3y ago
Bust out 1 and 2 are basically the Private Equity playbook. Buy a company, take on debt, buy-back stock. If possible, extract extra fees.
There's a book called Plunder that does a great job going into more detail on this model.
- fisherjeff 3y agoYeah, this is just debt recapitalization. And it can totally work! But it often (usually?) backfires spectacularly.
- mschuster91 3y ago> But it often (usually?) backfires spectacularly. Indeed, with oftentimes massive cost to creditors (banks, employees, vendors, landlords, unemployment insurance schemes, taxpayers). I wonder why such schemes haven't been banned yet, or what kind of catastrophe it needs to push regulators into action.