Re: “Dividend Recaps: How Private Equity Is Sucking the Life Out of Good Companies”
I write computer code for a living. I have worked at a few places purchased by Private Equity Companies (PE).
In my experience they come in and fire just about everyone who creates new products and anyone who makes a decent living. It’s all about cutting the business to the bone to show bigger short term profits.
Then after a few years of this artificial EBITDA, they sell you off with a lot of debt and no long term prospects because they killed off innovation.
When they sell you they walk away with sometimes ~20% of the sale price.
PE employees are not necessarily smart people. Any 18 year old could do this if they had the capital.
I am told not all PE companies are evil but, from what I have seen, they are. PE companies suck, they should not enjoy such a low tax rate for hurting our country.
