Conservative
Type 40
Romney at Bain: Big gains, some busts
The Wall Street Journal
Even an article from WSJ that slants negatively shows a lot of bright spots for Romney and Bain...
Romney at Bain
The Wall Street Journal
Even an article from WSJ that slants negatively shows a lot of bright spots for Romney and Bain...
Romney at Bain
Amid anecdotal evidence on both sides, the full record has largely escaped a close look, because so many transactions are involved. The Wall Street Journal, aiming for a comprehensive assessment, examined 77 businesses Bain invested in while Romney led the firm from its 1984 start until early 1999, to see how they fared during Bain's involvement and shortly afterward.
So, 78% made it at least 8 years after Bain took over. Pretty good.Among the findings: 22% either filed for bankruptcy reorganization or closed their doors by the end of the eighth year after Bain first invested, sometimes with substantial job losses. An additional 8% ran into so much trouble that all of the money Bain invested was lost.
Look there... someone that says Bain tried to fix or build up, not rape or break up. How interesting.The numbers, however, also reflect Bain's investing style, which, particularly during the firm's early years, was focused on smaller and sometimes troubled companies that Bain hoped to fix or build.
I'd take this guys opinion of Shitting Bulls any dayBain was investing in "riskier deals," said Steven Kaplan, a finance professor at the University of Chicago's Booth School of Business. "For every one that went bankrupt, they had one that was a screaming success. The overall effect was terrific performance" for the firm's investors.
How much you want to bet partisan douchenozzles like Shitting Bull don't take this into account.Some of the companies that ran into trouble did so after Bain was no longer involved and new owners had taken charge.
Interesting. Bain stayed as long or longer than average in firms it bought. Doesn't sound like the actions of a company just there to rape and sell.The Journal chose to look at target companies' fates by the end of the eighth year after Bain's initial investment, which appears close to the maximum time that Bain remained in control of any of its targets. Academic research has shown that buyout firms during this era exited their deals on average after 5½ years, but in a large percentage of cases were still involved beyond seven years.
Yeah, it was completely Romney's fault. Thee economy had nothing to do with it...A potentially mitigating factor, he added, is that these bankruptcy filings tended to be clustered during the post-2000 economic downturn.