Can someone steelman private equity, please? I'm honestly looking for the upsides (for non-investors) of when PE moves into an industry like medicine and begins buying up businesses that traditionally aren't already large chains.
I already hear the downsides frequently from someone whose work is directly affected.
It should be more about making certain levels of consolidation and deep erosion of local ownership illegal.
I think that companies above a pretty modest size should just not be able to acquire other companies.
Sure, if you’re a big dental chain, go ahead and open your own dentistry to compete with the local dentist with your own funds and resources. But large companies being allowed to buy other companies turns the economic system into a consolidation snowball.
Easy. PE 99% of the time buy businesses that were already failing and provide a lifeline. A failing business can't afford to pay for expensive medical treatments without a loan that a bank will not provide since it is failing.
People who are vehemently against PE generally do not have any idea of how the system works
Bi…cameral legislation?
Can someone steelman private equity, please? I'm honestly looking for the upsides (for non-investors) of when PE moves into an industry like medicine and begins buying up businesses that traditionally aren't already large chains.
I already hear the downsides frequently from someone whose work is directly affected.
The upside is to the folks who sold the businesses they owned.
Should they be outlawed from selling to certain classes of investor? Which?
It should be more about making certain levels of consolidation and deep erosion of local ownership illegal.
I think that companies above a pretty modest size should just not be able to acquire other companies.
Sure, if you’re a big dental chain, go ahead and open your own dentistry to compete with the local dentist with your own funds and resources. But large companies being allowed to buy other companies turns the economic system into a consolidation snowball.
Easy. PE 99% of the time buy businesses that were already failing and provide a lifeline. A failing business can't afford to pay for expensive medical treatments without a loan that a bank will not provide since it is failing.
People who are vehemently against PE generally do not have any idea of how the system works
[delayed]