Genuine Q: Are they buying failing businesses because they see potential and want to get those on the right track, or are they buying them because their forecast tells them they can still make money, before shutting them down for eternity?
It doesn’t matter to PE as long as they can make a profit.
Buy a failing business and leverage debt on it until you can’t, spend the money on yourself restructuring the business.
Buy a working business and gut it for multiple.
Buy failing businesses to offset tax burden.
This a meta level game, they don’t care about the outcome as long as it produces profit.
Product quality goes down the drain? That product is retirement homes, healthcare, food, utility, schools, it doesn’t matter. There is a million levels of separation and paperwork and a corp structure to prevent shit swimming up the stream.
Net result, if you live in America look around you, go to an auto service center, or a clinic. It’s been gutted for profit one way or another.
