"When Bain borrows all of that money from the bank, it's the target company that ends up on the hook for all of the debt." WTF? How... what?
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Replying to @renderwonk
@renderwonk I suspect you could form a new company for a single acquisition and achieve the same results in an obviously legal way.2 replies 0 retweets 0 likes -
Replying to @nothings
@nothings@renderwonk Sean, it usually _does_ involve a new company in this fashion, as far as I know. See http://macabacus.com/valuation/lbo/overview …2 replies 0 retweets 0 likes -
Replying to @cmuratori
@cmuratori@renderwonk But then somehow the acquirer manages to pull money out of that dummy corp to original without exposing self to suit?1 reply 0 retweets 0 likes -
Replying to @nothings
@nothings@renderwonk They don't have to do anything fancy. The "shareholders" just vote to pay distributions to the parent company.3 replies 0 retweets 0 likes -
Replying to @cmuratori
@cmuratori@renderwonk Well, legally, a hostile takeover is a risk you take by not keeping 51% of ownership, and that's all there is to say.1 reply 0 retweets 0 likes -
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Replying to @cmuratori
@cmuratori so if someone owns 51% of a company, they can legally give themselves 100% of the assets?2 replies 0 retweets 0 likes
@renderwonk But there's also plenty of additional monkey business, like approving huge "fees" and such, which apparently Bain did as well.
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