alt Hacker News>>> should-be-illegal process of putting debt on the acquired company's balance sheet
This is a basically a leveraged buyout (LBO). All private equity works this way. Yes, it should be illegal, or at least heavily limited.
I highly recommend this book: "Plunder: Private Equity’s Plan to Pillage America"
Replies
triceratops • today at 1:27 PM
Is it still "private equity" if a public company takes a loan to buy another public company?
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taeric • today at 1:39 PM
I mean, it is functionally the same as home loans? Would you be proposing a carve out that buying a house or car is ok this way, but nothing else?
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This book got a unfortunate title. Private Equity can be a completely legitimate activity. What it needs is some regulation on some underhanded financial tatics it uses, such as LBO.