Ever watch the Sopranos? Remember when the guy who owned the sporting goods store got into heavy debt with Tony and his crew in a card game? They took over his store and made him take out huge loans which they gave to themselves. Then they sold a lot of his merchandise out the back door at a loss for quick cash. Then when the banks wouldn’t loan any more money and the creditors were coming to lock the doors, they burned it down and collected the insurance money.
That is pretty much what a PE firm does to a company. But instead of gaudily dressed overweight Italian guys, it is Wall Street MBAs in $3k suits. And of course, it is all legal.
Spot on
A good principle to guide me through life: “This is all I have come to expect, standard lackluster performance. Trust nothing, believe no one and realize it will only get worse…”
