• clutchtwopointzero@lemmy.world
    link
    fedilink
    arrow-up
    6
    ·
    edit-2
    5 months ago

    Actually banks take collateral that is normally not what the private equity firms target and that actually seems to work, but the consequence is that hard assets of the firm (offices, buildings, hardware, cash, etc) are essentially given up

    • starchylemming@lemmy.world
      link
      fedilink
      arrow-up
      15
      ·
      5 months ago

      so think of your company as a horse

      you sell it to someone for a nice price thinking the other one wants to ride the horse just like you did. but they are actually a butcher and make horse sausage out of it.