Quote:
Originally Posted by Robbie
Rochard, correct me if I'm wrong...but wasn't EVERY company that Bain acquired already in a lot of trouble and on the verge of bankruptcy?
That's what Bain does. They are contacted by companies who are on the verge of going belly up, they buy them, try to fix them and sell them.
If the company just isn't going to make it no matter what (which means consumers are not buying their product), then Bain tries to make as much money off of the company as it can.
Doesn't sound "bad" to me. Sounds like smart business.
I'd like to see those same principles applied to govt.
Our society sometimes seems turned upside down.
What has always been sound financial principles are suddenly thought to be "bad".
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Yes, this is their business model. They buy companies on the verge of bankruptcy, so truthfully one can imagine this is a high risk business model.
The problem is that Bain makes money no matter what. In other words, if I was to buy a business I would work 24/7 and if required not take a paycheck in order to ensure profitability. Instead Bain takes a "management fee". Why not - They own the business, and this ensures they'll make money no matter what. Instead of trying to save the company, they suck all of the money out of it and then allow it to go into bankruptcy.
You want to see these principles applied to government? Let's say the government takes all of our tax dollars and buys all of the hospitals in the US. The elected officials get paid no matter what. After a year of running the hospitals, most of them have closed because the elected officials did little more than increase their own personal salaries and net worth. The tax payers lost all of their tax dollars the Federal government shuts down because it has no money, and all of the hospitals shut down because of a lack of funds. The only people that came ahead was the elected officials who made money no what happened.