It starts with a closing store.

[louis-t]

44. Actually, publicly-owned companies have a better success rate.

Even though private ownership allows less transparency in the way the business is run. I am not advocating banning private equity from buying businesses. You once again are twisting my words. I do think a little more regulation is in order. The idea of buying a business, saddling the company with huge loans, paying yourself first, then "let's see if we can make this business profitable by closing stores, firing people, cutting salaries, cutting corners by buying cheaper products or moving factories overseas" doesn't seem like a system designed to bring success to the business. My entire point was that selling to private equity does not guarantee success and usually the only winner is private equity. The profits are privatized and the losses are socialized. The public ends up paying for defaulted loans. This is how private equity pitches their services to their investors. There is very little risk.