Or if they can’t do that, they’ll load it up with the debt of its failed businesses and then let it loose to fail.
Comment on Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
wrekone@lemmyf.uk 5 months agoThere will likely be no benefit for the employees or the users. For the PE firm, the goal is usually to pump up the value and resell or reenter the market, at a massive profit, in a few years. To do that, they’ll have to make a lot of unpopular choices, such as layoffs and other cost cutting measures. If they’re privately held, those choices have far less impact on the value of the company, since the stock market is heavily swayed by public perception.
KingThrillgore@lemmy.ml 5 months ago
assembly@lemmy.world 5 months ago
Probably going to be what happened to Toys R Us where the company currently has value but private equity will pull out cash and anything not bolted down and load up what remains with extreme amounts of debt before abandoning what remains. The skeleton of a company that remains will be viewed as unviable as it will have large amounts of debt and no cash once the vultures have stripped everything off.