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by bell-cot 208 days ago
No - the selfish vulture capitalists are the outsiders who purchase a private company which has been successful for many years, then butcher it. There is no IPO - it is "you own X, and we are offering you $Y million to sell it to us".

After that - X's best assets are sold off (the VC's get the money), X goes deeply into debt (again, the VC's get the money), many of the employees are laid off, and X generally goes bankrupt within 7 years - because what is left of it can't make the payments on the debt.
2 comments
Gooblebrai 208 days ago
I don't understand your comment. You are both talking about public companies, and suddenly you are now talking about private equity?
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bell-cot 208 days ago
(You're right - I made a mess of things, and inter-mingled the cases where a privately-owned company is sold directly to private equity / vulture capitalists, and the case where a privately-owned company "goes public" - but that still does not lead to a happy ending.)
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lotsofpulp 208 days ago
>the selfish vulture capitalists are the outsiders who purchase a private company which has been successful for many years, then butcher it.

Sounds like the selfish vulture capitalists are the insiders who sell the company.

>X's best assets are sold off (the VC's get the money), X goes deeply into debt (again, the VC's get the money), many of the employees are laid off, and X generally goes bankrupt within 7 years - because what is left of it can't make the payments on the debt.

This doesn't make any sense, because X is the original asset. If part of X is sold, then the remaining portion of X loses value (assuming the sold part is the good part). If X is used as collateral, then it also loses value.

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