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> One specific practise I’d like to see banned is private equity buying companies with debt the company then assumes. It staggers me that it’s legal. What alte
by thaumasiotes 5d ago
> One specific practise I’d like to see banned is private equity buying companies with debt the company then assumes. It staggers me that it’s legal.
What alternative are you imagining?
- dghlsakjg 5d agoThat the buying company keeps the debt on their books instead of offloading it onto the company that they bought.
- alex43578 5d agoSo form a shell buying company A and secure the debt of company A with the assets of the newly purchased company B? Congrats, you added about 5 minutes of paperwork.
- dghlsakjg 5d agoHow would that be an example of what I described? If you are putting the debt on a shell company’s books, you aren’t putting debt on the buying companies books.
- alex43578 5d agoThe buying company is the shell company. Are you proposing that only an established company can buy another business with profits from their operations or something? If I start a company with a loan and want to buy 3 HVAC companies in my area, is that allowed under your rule?
- dghlsakjg 5d agoI’m arguing against the practice of leveraged buyouts. You aren’t describing all of the steps of a leveraged buyout. You are just describing a buyout. Buyouts are fine. Leveraged buyouts are what I think is not. I cannot be more clear or keep explaining until you go learn the difference since you aren’t understanding what I’m saying.