joelx
Joined 17 years ago
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Founder and CEO of www.CoalitionTechnologies.com, a web development & SEO firm based in Los Angeles, CA. Writes a personal blog at blog.joelx.com.
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Most private equity that uses leverage actually destroys businesses. Just look at what happened to toys r us for example. That's extremely common.
The problem is that when private equity buys a company, it usually uses lots of loans to do so. Then the most experienced people in the business are removed or deincentivized (the previous owners). Finally, this now poorly run and heavily in debt company struggles to survive and goes bankrupt in the next recession.
You will see this pattern repeated over and over with private equity.
I usually appreciate South Park and it's very strong morals. I think we all need to boycott the NBA and Blizzard for putting money over freedom.