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Private equity is a real trip
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Date: July 7th, 2024 4:28 PM Author: Khaki voyeur “Hey, I’ll buy you, and I’ll put a small fraction down and you will take a loan out yourself so I can buy you, and I’ll be paid back first” (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47818033) |
Date: July 7th, 2024 4:31 PM Author: Cheese-eating pocket flask idea he suggested I’ve first hand seen this work out very favorably for the target company but I guess that’s probably the exception given all the negative stuff you hear about PE (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47818043) |
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Date: July 7th, 2024 4:40 PM Author: Khaki voyeur It works out great for management which is why it was invented. It’s just a scam to load up an entity with debt so management gets paid $$. It’s still weird they’re able to have so much leverage though and get so much of the upside. They’re literally converting company assets into their own equity. (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47818089) |
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Date: July 7th, 2024 4:50 PM Author: Cheese-eating pocket flask idea he suggested So who is footing the bill in the end? (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47818120) |
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Date: July 7th, 2024 4:56 PM Author: Khaki voyeur In the end if it works out then everyone is happy. If it doesn’t then PE is still likely safe since they prioritize everything for themselves. Then the company and employees are fucked (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47818136) |
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Date: July 7th, 2024 5:03 PM Author: Grizzly Kitty Cruise Ship The “company” doesnt exist aside from the new shareholders.
Banks get fucked for lending money that doesn’t get paid back, and the employees too getting laid off |
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Date: July 9th, 2024 2:26 AM Author: henna spot (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47823177) |
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Date: July 7th, 2024 4:43 PM Author: Razzle duck-like church aren't ipods crazy (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47818097) |
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Date: July 7th, 2024 5:00 PM Author: bearded violent stage dog poop it's just tax arbitrage. a good scam if u can get in on it (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47818144) |
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Date: July 7th, 2024 5:01 PM Author: Grizzly Kitty Cruise Ship I don’t think the shareholders selling the stock take a loan. (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47818146) |
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Date: July 7th, 2024 5:14 PM Author: Hilarious piazza That shit that went down with Red Lobster was crazy, basically legal fraud (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47818171) |
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Date: July 7th, 2024 5:33 PM Author: bipolar sneaky criminal market the seller doesn't owe the loan. the buyer owes the loan with the purchased company as collateral. it is basically identical to a home mortgage. (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47818212) |
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Date: July 7th, 2024 8:02 PM Author: Grizzly Kitty Cruise Ship these people are idiots don’t bother (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47818539) |
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Date: July 8th, 2024 7:13 AM Author: Khaki voyeur It’s nothing like a home mortgage… The buyers are not personally guaranteeing the debt… (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47819508) |
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Date: July 8th, 2024 10:17 AM Author: Grizzly Kitty Cruise Ship The debt is secured by the corporate shares. The bank takes the risk. (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47819885) |
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Date: July 8th, 2024 10:21 AM Author: clear dashing philosopher-king pit TCR and the bank doesn't care because the MD on the account will be an MD at another bank in 4 years when everything explodes and he is just chasing his 8 figure fee on the deal. (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47819895) |
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Date: July 9th, 2024 2:23 AM Author: Khaki voyeur And the employees (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47823172) |
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Date: July 9th, 2024 10:29 AM Author: Grizzly Kitty Cruise Ship sure I guess but if your company is getting acquired by a PE firm it’s time to start looking (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47823664) |
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Date: July 9th, 2024 5:55 AM Author: Narrow-minded shrine I want to know if there are any actual success stories where PE taking over a family business actually worked in the long run. Seems like you hear a lot these days about PE targeting those types of companies. (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47823284) |
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Date: July 9th, 2024 6:06 AM Author: clear dashing philosopher-king pit Fortunoff sold to a PE fund in 2005 who then destroyed the nearly 100 year old franchise. Another PE took over in 2009 and did even more damage. The family then bought back the business for something like 5 cents on the dollar and fixed most of it and now it's back to over 30 stores. (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47823288) |
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Date: July 11th, 2024 8:39 AM Author: Khaki voyeur How long is the long run? The issue is that eventually they overplay their hand and there’s too much debt to sustain (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47830347) |
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Date: July 11th, 2024 8:40 AM Author: electric flushed windowlicker Dip Trip, Jew Fantasia (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2:#47830348) |