How Romney got Rich looting companies...

[JoeB131]

Interesting article for all those who are touting his "business experience".

How Romney grew rich by plundering companies - Chicago Sun-Times

The actions of Romney’s firm are detailed in the 2009 book by financial reporter Josh Kosman, The Buyout of America: How Private Equity is Destroying Jobs and Killing the American Economy. The chapter that focuses on Romney and Bain Capital is aptly titled “Plunder and Profit.”

Private equity firms operate through leveraged buyouts. They create limited partnerships to buy companies, usually pretty healthy ones since it’s the only way to attract financing, and then they burden the companies with debt while trying to make the balance sheets look good, often by cutting costs such as workers or their benefits, to flip the companies within five years for a profit.

snip...

Now the fun starts. To make a company look more valuable to a potential buyer, the companies are managed for short-term gains. Private equity firms often do this by making “deep cuts in spending on current operations and on research to develop new products.” Employees get fired. Reinvestment in the company is shortchanged — just the opposite of expanding economic growth and job opportunity.

Romney’s Bain Capital also figured out another way to make money from the companies it bought: have the companies borrow even more money and use it to pay the owners (themselves) distributions and dividends.

Romney denies that he was part of the decision to extract large sums from businesses that collapsed. But Kosman cites Geoffrey Rehnert, who helped start Bain Capital and who insists that Romney controlled the firm when it collected “enormous distributions from three companies ... it drove into bankruptcy.”
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Edited-copywrite violation

Whiny Romney supporter response..."But, but, but you just hate his religion!"

 

[Valerie]

 

[NYcarbineer]

This and his neocon credentials might be the only things the mainstream right would like about him.

 

[California Girl]

 

[Trajan]

Interesting article for all those who are touting his "business experience".

How Romney grew rich by plundering companies - Chicago Sun-Times

The actions of Romney’s firm are detailed in the 2009 book by financial reporter Josh Kosman, The Buyout of America: How Private Equity is Destroying Jobs and Killing the American Economy. The chapter that focuses on Romney and Bain Capital is aptly titled “Plunder and Profit.”

Private equity firms operate through leveraged buyouts. They create limited partnerships to buy companies, usually pretty healthy ones since it’s the only way to attract financing, and then they burden the companies with debt while trying to make the balance sheets look good, often by cutting costs such as workers or their benefits, to flip the companies within five years for a profit.

snip...

Now the fun starts. To make a company look more valuable to a potential buyer, the companies are managed for short-term gains. Private equity firms often do this by making “deep cuts in spending on current operations and on research to develop new products.” Employees get fired. Reinvestment in the company is shortchanged — just the opposite of expanding economic growth and job opportunity.

Romney’s Bain Capital also figured out another way to make money from the companies it bought: have the companies borrow even more money and use it to pay the owners (themselves) distributions and dividends.

Romney denies that he was part of the decision to extract large sums from businesses that collapsed. But Kosman cites Geoffrey Rehnert, who helped start Bain Capital and who insists that Romney controlled the firm when it collected “enormous distributions from three companies ... it drove into bankruptcy.”

When companies managed by private equity firms do go bankrupt, as many do, crippled by debt and gouging, the private equity firms have already made a tidy profit from high transaction fees, management fees and dividend payments. It’s the employees and creditors who lose big.

While there may be cases where Bain Capital ended up improving some businesses, Kosman says “a significant amount of the money that Romney’s firm made was off companies that ended up going bankrupt.”

“Millions for me, a pink slip for thee,” is the playbook of many private equity firms, and Romney was one of their savviest players.

Whiny Romney supporter response..."But, but, but you just hate his religion!"

are you upset with him, or that fact this these firms exist, even now.

 

[California Girl]

Apparently, the board's rules on copyright don't apply to Joe.

Why do some idiots incapable of following basic rules and then wonder why others mock them?

 

[grunt11b]

Interesting article for all those who are touting his "business experience".

How Romney grew rich by plundering companies - Chicago Sun-Times

The actions of Romney’s firm are detailed in the 2009 book by financial reporter Josh Kosman, The Buyout of America: How Private Equity is Destroying Jobs and Killing the American Economy. The chapter that focuses on Romney and Bain Capital is aptly titled “Plunder and Profit.”

Private equity firms operate through leveraged buyouts. They create limited partnerships to buy companies, usually pretty healthy ones since it’s the only way to attract financing, and then they burden the companies with debt while trying to make the balance sheets look good, often by cutting costs such as workers or their benefits, to flip the companies within five years for a profit.

snip...

Now the fun starts. To make a company look more valuable to a potential buyer, the companies are managed for short-term gains. Private equity firms often do this by making “deep cuts in spending on current operations and on research to develop new products.” Employees get fired. Reinvestment in the company is shortchanged — just the opposite of expanding economic growth and job opportunity.

Romney’s Bain Capital also figured out another way to make money from the companies it bought: have the companies borrow even more money and use it to pay the owners (themselves) distributions and dividends.

Romney denies that he was part of the decision to extract large sums from businesses that collapsed. But Kosman cites Geoffrey Rehnert, who helped start Bain Capital and who insists that Romney controlled the firm when it collected “enormous distributions from three companies ... it drove into bankruptcy.”

When companies managed by private equity firms do go bankrupt, as many do, crippled by debt and gouging, the private equity firms have already made a tidy profit from high transaction fees, management fees and dividend payments. It’s the employees and creditors who lose big.

While there may be cases where Bain Capital ended up improving some businesses, Kosman says “a significant amount of the money that Romney’s firm made was off companies that ended up going bankrupt.”

“Millions for me, a pink slip for thee,” is the playbook of many private equity firms, and Romney was one of their savviest players.

Whiny Romney supporter response..."But, but, but you just hate his religion!"

Thats nothing compared to the almost 5 trillion Obama and the democrats looted from the US tax payers in the last 3 years.

 

[JoeB131]

Apparently, the board's rules on copyright don't apply to Joe.

Why do some idiots incapable of following basic rules and then wonder why others mock them?

I'm not sure why one sentence in an article was a "copyright" violation.

Specifically since I linked to the article it came from and sourced it.

I also wonder why you are engaging in the deflection of not wanting to discuss the point.

Is it good for America that we have these equity pirates that essentially go into companies, fire as many people as they possibly can, and then dump the stock off on unsuspecting investors for a profit?

 

[JoeB131]

Interesting article for all those who are touting his "business experience".

How Romney grew rich by plundering companies - Chicago Sun-Times

The actions of Romney’s firm are detailed in the 2009 book by financial reporter Josh Kosman, The Buyout of America: How Private Equity is Destroying Jobs and Killing the American Economy. The chapter that focuses on Romney and Bain Capital is aptly titled “Plunder and Profit.”

Private equity firms operate through leveraged buyouts. They create limited partnerships to buy companies, usually pretty healthy ones since it’s the only way to attract financing, and then they burden the companies with debt while trying to make the balance sheets look good, often by cutting costs such as workers or their benefits, to flip the companies within five years for a profit.

snip...

Now the fun starts. To make a company look more valuable to a potential buyer, the companies are managed for short-term gains. Private equity firms often do this by making “deep cuts in spending on current operations and on research to develop new products.” Employees get fired. Reinvestment in the company is shortchanged — just the opposite of expanding economic growth and job opportunity.

Romney’s Bain Capital also figured out another way to make money from the companies it bought: have the companies borrow even more money and use it to pay the owners (themselves) distributions and dividends.

Romney denies that he was part of the decision to extract large sums from businesses that collapsed. But Kosman cites Geoffrey Rehnert, who helped start Bain Capital and who insists that Romney controlled the firm when it collected “enormous distributions from three companies ... it drove into bankruptcy.”

When companies managed by private equity firms do go bankrupt, as many do, crippled by debt and gouging, the private equity firms have already made a tidy profit from high transaction fees, management fees and dividend payments. It’s the employees and creditors who lose big.

While there may be cases where Bain Capital ended up improving some businesses, Kosman says “a significant amount of the money that Romney’s firm made was off companies that ended up going bankrupt.”

“Millions for me, a pink slip for thee,” is the playbook of many private equity firms, and Romney was one of their savviest players.

Whiny Romney supporter response..."But, but, but you just hate his religion!"

are you upset with him, or that fact this these firms exist, even now.

A bit of both, actually.

I think these firms kind of show a problem with American attitudes, from the person who "flips" a house with shoddy improvements, to the wholesale looting of bigger companies.

I guess I am also bothered by what this tells me about Romney's character. He was already rich when he went into Bain. There was no real reason - other than greed - for him to essentially destory people's livlihoods and in some cases communities, to make himself richer.

Not a religious man, but I am reminded of the story the Prophet Nathan told David about the wealthy man who still felt the need to steal a poor man's sheep.

Once upon a time, you got rich in this country building things. Today we get rich looting them. And you wonder why we are in such dire straights...

 

[JoeB131]

That this guy might stick us with another four years of Obama, yeah.

This guy's business record is what John Kerry's war record was in 2004. Looks great from the outside, but if you start looking at it closely, it's a much uglier picture.

The strongest argument that the GOP has against Obama is that we are fully three years into this recession and unemployment is as bad as it's ever been. Heck, went out to run some errands, and you have strip malls out where I live where half the stores are empty or out of business. He's had a terrible jobs record.

And who does the GOP want to run? A guy who was part and parcel of the job killling practices.

So you got Obama who "really cares" but isn't getting anything done vs. the guy who put people out of work, hires illegals to do the lawn work at one mansion while complaining another mansion isn't big enough.