|
|
|
|
|
|
by plorkyeran
625 days ago
|
|
|
A lot of PE acquisitions are companies with would have otherwise trundled along not making any money but taking a very long time to go bankrupt, with the PE firm pushing them much faster towards bankruptcy. There is a causal relationship between a PE acquisition and going bankrupt, but nonetheless you’re right; obviously companies which are bought by people who buy failing businesses have worse outcomes than public companies. |
|
|
the PE firm pushing them to do something drastic, but low chance of success, in the hopes of turning the fortunes around.
And there's nothing wrong with that imho - if it was going down, might as well chance a lottery ticket. The people who lose money are the PE investors, who knew the risk coming in.