| ▲ | CPLX a day ago | |
What you’re saying just isn’t true. Looting the companies is accomplished by stacking up debt and then giving themselves the money. Occasionally there are a few variations like looting a pension fund or taking a high quality product and making it horrible and selling that until people notice. It’s literally their business model, it’s happened thousands of times and is a very clear fixture of the modern American business climate. If you don’t know this it’s because you aren’t looking or it’s in your interest to say you don’t know this. | ||
| ▲ | mbesto 12 hours ago | parent [-] | |
> It’s literally their business model It's literally not. It happens to be the business model for a subsection of private equity (usually large cap) and its the one that gets most headlines. There are roughly ~5,000 M&A events per year (often involving PE) and yet you'll hear about 5~10 at most cases where the company gets loaded with debt and stripped of assets. The large plurality of PE groups are buy and hold for 4~7 years and are largely focused on EBITDA expansion. > If you don’t know this it’s because you aren’t looking or it’s in your interest to say you don’t know this. No offense, but you clearly don't know what you're talking about. | ||