Thread

1. NegativeK · 1789944184 · focus · HN ↗

   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.

   1. toast0 · 1789952339 · focus · HN ↗

      Private Equity allows an owner to sell their income generating but slowly dieing company for its value today. The company will keep operating for 3-5 years and then rapidly shutdown.

      This is valuable for business owners, because it gives them a way to get the value out of a failing business without having to ride it all the way into the ground.

      It's valuable for consumers because it provides locations to shop for halloween supplies.

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