Re:The SEC Rule That Destroyed the Universe
by r00fus on Friday April 10, 2020 @05:12PM
(#22837412)
Stock buybacks are even more dangerous when combined with leveraged buy-outs.
So a venture capital/private equity firm buys a successful company & brand, loads it up with debt, buys back the stock and pays itself "management fees" equal to the payout, while hollowing out the company itself.
So a venture capital/private equity firm buys a successful company & brand, loads it up with debt, buys back the stock and pays itself "management fees" equal to the payout, while hollowing out the company itself.