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View Diary: Wall Street vulture destroys Britain's largest nursing home company (52 comments)

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  •  The Simmons story (1+ / 0-)
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    Dburn

    points out that one of its PE owners borrowed money and transferred it from Simmons to the PE firm.

    Doing nothing to help Simmons grow, compete and/or innovate:

    Twice after buying Simmons, THL borrowed more. It used $375 million of that money to pay itself a dividend, thus recouping all of the cash it put down, and then some.

    A result: THL was guaranteed a profit regardless of how Simmons performed. It did not matter that the company was left owing far more than it was worth, just as many people profited from the mortgage business while many homeowners found themselves underwater.

    A public option for health insurance is a national priority.

    by devtob on Thu Jun 02, 2011 at 12:06:32 PM PDT

    [ Parent ]

    •   business school students (0+ / 0-)

      are most excited about "Private Equity". That shows that this will probably be going on for some time. The stock market going down is makes the "perfect storm" for Private Equity firms.

      As valuations drop, management realizes the best way to grab a fortune is to take it private with private equity partners.

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