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A lot of PE acquisitions are companies with would have otherwise trundled along not making any money but taking a very long time to go bankrupt, with the PE fir
by plorkyeran 2y ago
A lot of PE acquisitions are companies with would have otherwise trundled along not making any money but taking a very long time to go bankrupt, with the PE firm pushing them much faster towards bankruptcy. There is a causal relationship between a PE acquisition and going bankrupt, but nonetheless you’re right; obviously companies which are bought by people who buy failing businesses have worse outcomes than public companies.
- chii 2y ago> PE firm pushing them much faster towards bankruptcy the PE firm pushing them to do something drastic, but low chance of success, in the hopes of turning the fortunes around. And there's nothing wrong with that imho - if it was going down, might as well chance a lottery ticket. The people who lose money are the PE investors, who knew the risk coming in.