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. tekla · 1789944746 · focus · HN ↗

      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

      1. apical_dendrite · 1789947239 · focus · HN ↗

         That's one model of private equity, but PE has also been buying up very successful local businesses in areas like veterinary care. The PE firm keeps the name and branding of the local vet because people have traditionally wanted to take their pet to a trusted local vet, not a big chain.

         1. dansquizsoft · 1789951900 · focus · HN ↗

            So this vet practice are now a big chain except for in name only?

            1. apical_dendrite · 1789955455 · focus · HN ↗

               Yes, look up NVA vet. They own 1000+ vet practices but they all sound like small, local businesses.

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