Why would it be profitable for the company they just paid a lot of money to acquire to implode?
they usually get the company to take out the debt to actually be acquired. it’s the key first step.
then they extract as much cash as possible while the debt ballons. so called ‘extracting brand value’.
the investors usually do quite well
They sell off everything of value before it implodes and cash out. THEN they let it implode with nothing but the debt remaining.
they usually get the company to take out the debt to actually be acquired. it’s the key first step.
then they extract as much cash as possible while the debt ballons. so called ‘extracting brand value’.
the investors usually do quite well