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> PE firms aren’t running around flipping veterinarian firms for a couple hundred grand. They do that with fortune 500 companies for billions, not vet offices

> PE firms aren’t running around flipping veterinarian firms for a couple hundred grand. They do that with fortune 500 companies for billions, not vet offices for tens of thousands. They’re buying them because they expect good ROI going forward. This is a dumb thing to say. My views are almost entirely informed by how PE operates in mental health, aka actual facts and not stupid mental models of actors optimizing utility functions. According to you, Blackstone apparently thought childhood autism services was a good ROI going forward, and having to sell off all the assets was just an unfortunate little boo-boo. Wouldn't want to hurt PE's feelings by suggesting they were only in it for short-term gain. https://bhbusiness.com/2022/11/11/large-autism-provider-card-shuts-down-operations-in-10-states/ https://bhbusiness.com/2022/11/11/large-autism-provider-card... Here they openly discuss the opportunities for profitable exits in mental health: https://bhbusiness.com/2022/11/15/private-equity-expected-to-increase-behavioral-health-deals-in-2023/ https://bhbusiness.com/2022/11/15/private-equity-expected-to... I don't think you are responding in good faith - it doesn't seem like you've read the article, you are just responding to the headline + your own fact-free misconceptions.

mattmaroon 2y ago
The article specifically says “A large number of these funds are seeing veterinary medicine as a good profit center” which is exactly what I said and fairly obvious. You can’t tell me the article is right one minute and wrong the next. The article is very poorly written, it says they have spent billions on veterinary practices, dog food brands, and pet insurance companies. Two of these things are not like the others. You’d have to buy a whole lot of veterinary offices, like all of them, to get into the billions. It’s probably an insignificant sum relative to the others. And all of it just shows they think the pet industry is going to continue to do well. If they’re trying to flip real estate, they are going about it in a really stupid way. And you just proved my point was for the big chains rather than individual practices like what is happening in the veterinary industry. Also the second link says they are buying up mental health because of anticipated continuing long term demand, which is exactly what I said PE is doing here. I like that you argue against yourself for me. You’re worried about if I’m arguing in bad faith, you’re just arguing badly.

mattmaroon 2y ago

The article specifically says “A large number of these funds are seeing veterinary medicine as a good profit center” which is exactly what I said and fairly obvious. You can’t tell me the article is right one minute and wrong the next. The article is very poorly written, it says they have spent billions on veterinary practices, dog food brands, and pet insurance companies. Two of these things are not like the others. You’d have to buy a whole lot of veterinary offices, like all of them, to get into the billions. It’s probably an insignificant sum relative to the others. And all of it just shows they think the pet industry is going to continue to do well. If they’re trying to flip real estate, they are going about it in a really stupid way. And you just proved my point was for the big chains rather than individual practices like what is happening in the veterinary industry. Also the second link says they are buying up mental health because of anticipated continuing long term demand, which is exactly what I said PE is doing here. I like that you argue against yourself for me. You’re worried about if I’m arguing in bad faith, you’re just arguing badly.