How private equity conquered America

[dj181]

just more reason to hate the pew sa

[dj181]

they operate best in secrecy

completely evil pieces of fucking shit

and they control politicans behind the scenes

[Humble Narcissist]

What can we do about it?

[bigkid]

I've been semi-involved in a couple PE deals and what they're saying is 100% true.  I've watched them take good, profitable businesses and load them up with debt, gut them, appoint "their" people in high positions who don't even know the business half the time and then watch them run them into the ground in under 3 years.  It's pretty sickening.  I get the angel investing and early funding rounds that some businesses need to get of the ground but the takeovers always seem to be a trainwreck.

[GymnJuice]

I've been semi-involved in a couple PE deals and what they're saying is 100% true.  I've watched them take good, profitable businesses and load them up with debt, gut them, appoint "their" people in high positions who don't even know the business half the time and then watch them run them into the ground in under 3 years.  It's pretty sickening.  I get the angel investing and early funding rounds that some businesses need to get of the ground but the takeovers always seem to be a trainwreck.

From what I've seen they offer the original owners a cash buyout in addition to "stock." Have you ever seen that stock actually pay off to the original business owners that it was issued to?

[Rambone]

just more reason to hate the pew sa

Was recommended this today. I’m on the dj algo! I’ve also been getting AI Hitler speaking in English

[Marty Champions]

video starts with a lie nothing about blackrock is private equity, its 110% corporation government run. Im amazed how many people have no idea

[bigkid]

From what I've seen they offer the original owners a cash buyout in addition to "stock." Have you ever seen that stock actually pay off to the original business owners that it was issued to?

The only deal I was a part of, the original owners got all cash, which was great for them because the common stock went to zero.  The basically sold the company for a great multiple, after their best year.  They killed it.

So the PE firm bought this family business, put 20 million in debt on the company, hired a bunch of highly paid middle men, tried to expand the business and failed miserably.  Unfortunately, the company I worked for a the time and still do today, formed a strategic alliance with this company after the PE firm bought them.  The owners in my company were offered preferred stock in the new company and ended up losing 90% of their money when the company was on the verge of insolvency and was sold to another PE firm.

The new PE firm that bought the company was called Benson Hill.  Another group of highly educated, dumb people that with enough money, thought they could turn the business around.  They went public as a spac.  Went public at $10 and is now trading around 25 cents.  The ended up folding the business after building a brand new 40 million dollar facility, that was promptly sold for 20 million about 6 months after completion.  So much dumb, cheap money was running amuck when interest rates were low. 

[Sandrock]

How Vigorous Steve conquered dj181's anus

[Dave D]

I've been semi-involved in a couple PE deals and what they're saying is 100% true.  I've watched them take good, profitable businesses and load them up with debt, gut them, appoint "their" people in high positions who don't even know the business half the time and then watch them run them into the ground in under 3 years.  It's pretty sickening.  I get the angel investing and early funding rounds that some businesses need to get of the ground but the takeovers always seem to be a trainwreck.

Yup.

I worked for a family owned company that sold to a PE firm, they bought around 20 similar businesses across the US, placed them under a “corporate umbrella”  and with in 2 years bankrupted the entire operation. It was absolutely insane, every single business was profitable and successful and the PE group came in to clean up processes and streamline operations.


They actually shut down all operations via e-mail on December 21st.

[Flexacon]

Yup.

I worked for a family owned company that sold to a PE firm, they bought around 20 similar businesses across the US, placed them under a “corporate umbrella”  and with in 2 years bankrupted the entire operation. It was absolutely insane, every single business was profitable and successful and the PE group came in to clean up processes and streamline operations.


They actually shut down all operations via e-mail on December 21st.

Sometimes this is done by design.

PE firms come in with big ideas and and incompetent leaders and bankrupt a company. Meanwhile Hedgefunds short the stock into oblivion. Once a company is bankrupt Hedgefunds don't need to pay taxes on the profits of short positions. They even go as far as too short more stock than is actually available.

Guess who typically have their insiders in those PE firms ... Hedgefunds, and those "incompetent" leaders are actually competent people whose job is to look incompetent.

This is what they tried to do to Gamestop, but failed spectacularly causing that short squeeze, but it worked with BBBY, except the CFO wasn't competently incompetent and got caught cooking the books so jumped head first out of his NYC tower block mansion.

[dj181]

How Vigorous Steve conquered dj181's anus

ahhhhh

fuck off shithead

you're going straight to ignore

[joswift]

ahhhhh

fuck off shithead

you're going straight to ignore

If you are going to ignore everyone who takes the piss out of you your feed is going to get pretty blank real soon

[Dave D]

Sometimes this is done by design.

PE firms come in with big ideas and and incompetent leaders and bankrupt a company. Meanwhile Hedgefunds short the stock into oblivion. Once a company is bankrupt Hedgefunds don't need to pay taxes on the profits of short positions. They even go as far as too short more stock than is actually available.

Guess who typically have their insiders in those PE firms ... Hedgefunds, and those "incompetent" leaders are actually competent people whose job is to look incompetent.

This is what they tried to do to Gamestop, but failed spectacularly causing that short squeeze, but it worked with BBBY, except the CFO wasn't competently incompetent and got caught cooking the books so jumped head first out of his NYC tower block mansion.

This makes sense for companies that go public, but when the PE never gets far enough to have an IPO (which I believe was the goal of the place where I worked) I’m assuming it’s due to mismanagement and/or not understanding the business they purchased? These were very well accomplished people - I think they saw these small businesses, run by much less accomplished people, that had large profit statements and they thought they would apply their knowledge and run it better :/

[Dokey111]

It hits home once you have an elderly parent residing in one of these facilities. You can see the changes overnight, and they are not for the better believe me.  Slashing personnel (not enough people now, and the ones still there are stressed out).  Firing the good people and keeping the bad (lower paid).  Meanwhile you hope your mom gets fed today.

[dj181]

baldwin had a nice looking arm

17 inches

[El Diablo Blanco]

PE benefitted the most from the covid money.  They took hundreds of billions, scooped up all real estate when it dropped and fucked over the entire US housing market.