The most prestigious law school admissions discussion board in the world.
|
 |
 
|
Private equity is a real trip
Poast new message in this thread
Date: July 7th, 2024 4:28 PM Author: razzle house “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\u0026mark_id=5310481",#47818033) |
Date: July 7th, 2024 4:31 PM Author: deep ivory rigor theater stage 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\u0026mark_id=5310481",#47818043) |
 |
Date: July 7th, 2024 4:40 PM Author: razzle house 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\u0026mark_id=5310481",#47818089) |
|
Date: July 7th, 2024 4:50 PM Author: deep ivory rigor theater stage So who is footing the bill in the end? (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2\u0026mark_id=5310481",#47818120) |
|
Date: July 7th, 2024 4:56 PM Author: razzle house 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\u0026mark_id=5310481",#47818136) |
|
Date: July 7th, 2024 5:03 PM Author: abnormal native foreskin 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 |
|
Date: July 9th, 2024 2:26 AM Author: bonkers orchestra pit (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2\u0026mark_id=5310481",#47823177) |
|
Date: July 7th, 2024 4:43 PM Author: Frisky yapping chapel aren't ipods crazy (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2\u0026mark_id=5310481",#47818097) |
|
Date: July 7th, 2024 5:00 PM Author: primrose irradiated friendly grandma old irish cottage 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\u0026mark_id=5310481",#47818144) |
|
Date: July 7th, 2024 5:01 PM Author: abnormal native foreskin I don’t think the shareholders selling the stock take a loan. (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2\u0026mark_id=5310481",#47818146) |
|
Date: July 7th, 2024 5:14 PM Author: Shimmering gaming laptop 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\u0026mark_id=5310481",#47818171) |
|
Date: July 7th, 2024 5:33 PM Author: Excitant sandwich 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\u0026mark_id=5310481",#47818212) |
|
Date: July 7th, 2024 8:02 PM Author: abnormal native foreskin these people are idiots don’t bother (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2\u0026mark_id=5310481",#47818539) |
|
Date: July 8th, 2024 7:13 AM Author: razzle house 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\u0026mark_id=5310481",#47819508) |
|
Date: July 8th, 2024 10:17 AM Author: abnormal native foreskin 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\u0026mark_id=5310481",#47819885) |
|
Date: July 8th, 2024 10:21 AM Author: Turquoise Slap-happy Faggot Firefighter Business Firm 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\u0026mark_id=5310481",#47819895) |
|
Date: July 9th, 2024 2:23 AM Author: razzle house And the employees (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2\u0026mark_id=5310481",#47823172) |
|
Date: July 9th, 2024 10:29 AM Author: abnormal native foreskin 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\u0026mark_id=5310481",#47823664) |
|
Date: July 9th, 2024 5:55 AM Author: frum parlour 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\u0026mark_id=5310481",#47823284) |
|
Date: July 9th, 2024 6:06 AM Author: Turquoise Slap-happy Faggot Firefighter Business Firm 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\u0026mark_id=5310481",#47823288) |
|
Date: July 11th, 2024 8:39 AM Author: razzle house 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\u0026mark_id=5310481",#47830347) |
|
Date: July 11th, 2024 8:40 AM Author: tan aggressive national security agency forum Dip Trip, Jew Fantasia (http://www.autoadmit.com/thread.php?thread_id=5551798&forum_id=2\u0026mark_id=5310481",#47830348) |