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Private equity is the equivalent of “pay day loans” for businesses. Instead of predatory or illegal rates, it’s a ticking time bomb in the form of increased sal
by xyst 3y ago
Private equity is the equivalent of “pay day loans” for businesses. Instead of predatory or illegal rates, it’s a ticking time bomb in the form of increased sales pressure and profit driven culture.
Often times PE gets these companies to take out massive amounts of debt. In some of these cases the debt is owned by some subsidiary of the PE.
- uptownfunk 3y agoWhy are you being downvoted? Firms regularly to saddle up the portco with debt and then completely gut and reorg the business and flip it up, that’s the model