runsongas
Contributor
probably not at least in the short term since Barings is taking it over.
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wnissen
Contributor
Yes, we don't know other than there will be some kind of change. Private equity does not take over a company in order to dump a bunch of money in and nurse it back to health.
Let's hope someone does a better job than AMF did with Harley. Anyone else remember those pos's?
Yep. Complete garbage. You had to stop every hundred miles and tighten damn near every nut and bolt. Chrysler did the same things with Jeeps.
Eric Sedletzky
Contributor
I’ve read several of the linked articles regarding equity firms and what they do.
I still don’t understand how they spend money to buy an ailing company then bankrupt it and run it into the ground only to profit somehow?
I know of two real situations personally of takeovers. One was a trucking company and another was a logging company. In both cases it ended badly for everyone except for the people who took it over.
The tactics they use seem very complex when they try to explain it and I can’t wrap my head around the mechanics of how it works. Economics was never my strong point.
But anyway, it probably doesn’t matter. I wasn’t planning on buying any Aqualung stuff now or in the future. If in the future my Connie’s can’t be serviced they will get a proper burial at sea and I guess my Scubapro’s will have to take over.
I still don’t understand how they spend money to buy an ailing company then bankrupt it and run it into the ground only to profit somehow?
I know of two real situations personally of takeovers. One was a trucking company and another was a logging company. In both cases it ended badly for everyone except for the people who took it over.
The tactics they use seem very complex when they try to explain it and I can’t wrap my head around the mechanics of how it works. Economics was never my strong point.
But anyway, it probably doesn’t matter. I wasn’t planning on buying any Aqualung stuff now or in the future. If in the future my Connie’s can’t be serviced they will get a proper burial at sea and I guess my Scubapro’s will have to take over.
Eric Sedletzky
Contributor
They also had to wipe the floors down hourly at the Harley Dealerships and/or use an oil pan at night because they leaked so much oil. They didn’t want customers to see it.
Watch pretty woman
runsongas
Contributor
@Eric Sedletzky see the Death of Toys R Us. The Demise of Toys 'R' Us Is a Warning
in simpler terms, the PE is Paulie
in simpler terms, the PE is Paulie
Because the company's pieces are worth more separately than they are together. And this usually happens because the market has changed or the company is being run poorly. The company's assets are being underutilized and a PE firm sees that as an opportunity to make money. Like many things in economics, it looks bad from the popular point of view because the bad impacts are localized and apparent to everyone (storied company shuts down, layoffs, iconic buildings sold). The possible good impacts of getting assets to those who will use them better, lower prices across the entire economy for consumers, and jobs for others elsewhere as a result, are spread out widely and hard to see. In the Covid market craze, interest rates became so low and money became so easy that financing these deals became very, very easy and people who normally wouldn't be interested were looking for someplace to put their money and make higher returns (e.g., the storied group of anesthesiologists noted above).
OMyMyOHellYes
Contributor
... people that pass gas for a living ...
