> Is there some code of conduct for public companies but not private ones?

No but there’s a difference between private companies and PE owned companies. PE model is very different from regular private companies, and it often involves extracting maximum profits at the expense of the company itself.

And as far as public companies go, shareholders will have to say something about the operation of the company if you start intentionally sinking it.

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mbesto 12 hours ago | parent | next [-]

> PE model is very different from regular private companies, and it often involves extracting maximum profits at the expense of the company itself.

Not all PEs model. The ones you are referring to are often buying large businesses (like the infamous Toys R Us) load them with debt and strip their assets. 90% of the other PEs out there do not do this...in fact the opposite. They put capital on their balance sheet to grow.

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nazcan 19 hours ago | parent | prev | next [-]

But doesn't extracting maximum profits at the expense of the company itself mean front loading profits - i.e. long-term worse outcomes?

How does a PE company make money from that - unless who they sell it to is not saavu enough to realize it?

	▲	mvc 14 hours ago \| parent [-]
		If they sell all the assets owned by the company, they don't need to sell the company itself. They just need to find another one to strip.

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anovikov 18 hours ago | parent | prev [-]

What is the "company itself" if not its owners (private equity company that is)? Everything else is just an asset of it. If they see a way to maximise profit by draining the company that's better than any other one, why not? After all if company is then simply liquidated, it frees up market opportunity for new entrants.