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You could argue that the 'discipline of debt' imposed on the management of PE-bought companies improves operational efficiency - because they need to generate s
by ksar 11y ago
You could argue that the 'discipline of debt' imposed on the management of PE-bought companies improves operational efficiency - because they need to generate steady cash flow to delever the company. However, these guys lever to the hilt with tonnes of cheap debt for a reason, though it's cheap it still results in huge tax shields.
- jessaustin 11y agoHaving worked at a company in the throes of private equity management, I can affirm that such "improvement" is not a universal phenomenon. PE funds take baths too.
- hessenwolf 11y agoWhat does take a bath mean in this context? I keep hearing it.
- XorNot 11y agoWell when a company fails we also say it's "going under"...
- jessaustin 11y agoTo have very disappointing returns on an investment. Similar to "get soaked", "get cleaned out", etc.