A firm that serves kids with autism grew until it had 265 clinics. Then private equity took over.
A firm that serves kids with autism grew until it had 265 clinics. Then private equity took over.
www.nbcnews.com
A firm that helps kids with autism grew till it had 265 clinics. Then private equity took over.
This is pure evil
I just don't get how they make money doing this.
And then the line goes up? Why? How? Where does the new money come from?!
As far as I understand, for publicly traded firms they just need to show significant reductions in operational costs and invested capital, what amounts to a "healthy" company because higher profits, and the share price goes up.
When the share price goes up, they get financing against the now higher share price (banks are where new money comes from), use that money to buy controlling shares in other companies, and repeat the process.
When the bare-bones operation shows that it can't do what it's supposed to do with fuck all resources, they let the company die, declare bankruptcy and use accounting tricks so the losses reduce their tax load.
Okay so:
So the bank is the one eating the loss while the private equity firm gets away with all the loan money?
How isn't this just bank fraud 😆
Yup, good ol' vulture capitalism.
Make a corpse, pick its bones, and fly away to the next meal.
Shareholders 'in on it' can make a tidy profit too, so they don't care that their new CEO or owner or w/e has track records likes these. 'What's that? You killed the last five companies you bought?' Eyes bulge with looney toons dollar signs.
What more amazing is that people can look at this system and say "look buddy, you don't have to like it, but capitalism just works, unlike your gommunism bullshit."