4 ms·
I need to resurrect my idea of a list of companies (especially ones that manufacture goods) that are owned by Private Equity so people can avoid them. In most
by gadders 3y ago
I need to resurrect my idea of a list of companies (especially ones that manufacture goods) that are owned by Private Equity so people can avoid them.
In most cases, the brand name stays the same but the quality falls off a cliff.
- aklemm 3y agoThat's an excellent idea. I posted in the thread another angle I'd love to see get traction: https://news.ycombinator.com/item?id=40238807 https://news.ycombinator.com/item?id=40238807
- pigeons 3y agoFor products it would be good to include a date so people can obtain the quality items second-hand.
- rwmj 3y agoInstant Pot was one ...
- sevagh 3y agoTravis CI
- m2f2 3y agoVMWARE CA (Computer Associates) CITRIX ...
- erikerikson 3y agoCA was where innovation went to die far before Broadcom. It's main business process was buying popular products, "enterprising" but mostly selling them, and then selling them off as they went out of fashion.
- gosub100 3y agoI would like this service but for vet clinics, apartment rental forms, and dentists.
- nicolas_t 3y agoI had the dubious luck to work for a company that got acquired by private equity. The company was resold for double the price it was valued when the private equity injected capital after 3 years. But during those 3 years, they lowered the quality, increased the quantity of product sold and now, no customers are excited by their product anymore.
- technofiend 3y agoWhen I jokingly talk about MBA Disease being the same as Dutch Elm Disease, this is what I mean: parasitic behavior that kills the host. On one side this is a study in destroying a chain restaurant, but what'll be taught in business school will be the other side: was this transaction profitable for one party and if so how do we repeat it? It won't be taught as a cautionary tale unless the hedge fund lost out.
- malshe 3y agoHedge Funds != Private Equity. They are two very different businesses. For starters, hedge funds don't run other companies.
- bradleyankrom 3y agoWhataburger :(
- Whatarethese 3y agoDid this happen to Chipotle?
- erikerikson 3y agoAnd then it was reversed, purchased back by the founder for less
- JackFr 3y agoChipotle took on McDonalds as an early investor, used McDonald's investment to quickly expand from 16 to 500 stores. Chipotle had a tremendously successful IPO, which they used to fund further growth. McDonalds, who was always a minority investor, divested themselves from Chiptole earning $1.5 billion on a $450 million investment. It trades on the NYSE as CMG and has a market cap of 88 billion.
- Zenzero 3y agoBased on how Chipotle has been the last couple years though, I foresee them going down the route of Red Lobster within the next 10 years. That kind of valuation goes against how bad the food has gotten.
- erikerikson 3y agoThanks for stimulating me to update
- deleted 3y ago[deleted]
- ElevenLathe 3y agoThis will work until a PE firm buys you out.
- bradjohnson 3y agoTim Hortons
- kevin_thibedeau 3y agoThey're on my lifetime ban list after PE ruined their menu.
- abirch 3y agoTim Hortons is part of $RBI [1] and not private equity. [1] https://en.wikipedia.org/wiki/Tim_Hortons https://en.wikipedia.org/wiki/Tim_Hortons
- bradjohnson 3y agoThey are (were?) 51% owned by Brazilian private equity group 3G Capital which in turn owns 1/3 of RBI: https://en.wikipedia.org/wiki/3G_Capital https://en.wikipedia.org/wiki/3G_Capital
- bradjohnson 3y agoAh, here it is: https://www.rbi.com/English/news/news-details/2014/Worlds-Third-Largest-Quick-Service-Restaurant-Company-Launched-with-Two-Iconic-and-Independent-Brands-Tim-Hortons-and-Burger-King/default.aspx https://www.rbi.com/English/news/news-details/2014/Worlds-Th... > 3G Capital to own approximately 51% of new company