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View Diary: Evidently Romney wasn't the numbers guy at Bain (136 comments)

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  •  The Bain business model: (3+ / 0-)
    Recommended by:
    ssgbryan, MaikeH, Brooke In Seattle

    1) See healthy company

    2) Acquire healthy company in highly leveraged deal, risking no more than 30 cents on the dollar of own money.

    3) Sell off most valuable assets of healthy company at garage sale prices.

    4) Pocket profits for sale.

    5) Shove whatever is left over of once healthy company into a landfill or have someone else clean up the mess.

    6) Look for next healthy company. Wash, rinse, repeat.

    It's so damned simple, any six year old sociopath could do it. No advanced numbers skills needed.  

    •  Well to be fair. (0+ / 0-)

      I don't believe they targeted "healthy" companies.

      "You have attributed conditions to villainy that simply result from stupidity"

      by newfie on Fri Sep 14, 2012 at 09:57:53 AM PDT

      [ Parent ]

      •  If one uses R-Money's own definition of "healthy" (0+ / 0-)

        i.e. no preexisting conditions, then most of the companies Bain targeted for takeover were, in fact, healthy.

        It's certainly true that many of the firms acquired by Bain were going through a rough patch, or temporarily "sick." That's the reason they were receptive to Bain's overtures in the first place. But the "sickness" in question here would be akin to an otherwise healthy person with the flu - and not one with the kind of preexisting conditions that would disqualify a person from Romneycare V 2.0... or a company from the tender mercies of Bain's board of directors.  

        In the case of an ailing business, "preexisting conditions" would refer to one with no appreciable cash flow or salable assets. Any company that could not satisfy both of those requirements would not be considered a suitable takeover target for Bain.  

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