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Why would it be profitable for the company they just paid a lot of money to acquire to implode?
by 0xDEAFBEAD 14d ago
Why would it be profitable for the company they just paid a lot of money to acquire to implode?
- TylerE 13d agoThey sell off everything of value before it implodes and cash out. THEN they let it implode with nothing but the debt remaining.
- 0xDEAFBEAD 13d agoWhy would banks lend to such an enterprise if they don't expect to get paid back?
- TylerE 13d agoThey don't. They lend to the target company BEFORE the buyout.
- lazide 13d agothey usually get the company to take out the debt to actually be acquired. it’s the key first step. then they extract as much cash as possible while the debt ballons. so called ‘extracting brand value’. the investors usually do quite well