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It may just be a misperception on my part, but it appears to me that on average publicly traded companies are more likely to engage in this behavior and to grea
by cosmic_cheese 1y ago
It may just be a misperception on my part, but it appears to me that on average publicly traded companies are more likely to engage in this behavior and to greater extents than private companies. Startups can be pretty bad about it once the VCs come knocking, too. Maybe bootstrapped and private forever is the way.
- amonroe805-2 1y agoBroadly agree, with the one caveat that private-equity-owned businesses seem to be even worse than public companies in this regard.
- Analemma_ 1y agoI agree, although there’s a lot of selection bias at work here: companies usually don’t get bought by private equity unless they’re already in distress, so whatever they were doing before the acquisition clearly wasn’t working.
- fn-mote 1y agoC.f. Private equity entrance to the veterinary market. Were they all really distressed? The issue is valuation of company vs underlying assets, isn’t it? Distress is one way, but a solid company not squeezing all of the value out of its customers / capital is another.