Hinckley Yachts: Killed by private equity scumbags, just like Simmons Mattress was

[number22]

Quote from lrm21:

Boo Fucking Hoo...

I missed the part where the Private Equity guys, kidnapped his family and threatened to send them back to him in pieces until he signed over the company.


WTF is it with all these anti-capitalist threads.

Capitalism is a 2 way street. He could of been happy running the family business and saving money for the rainy days to come instead he got greedy and now his business is going under.

Sheep get slaughtered.

I agree on the first part, the blame should go to central bank, which provided the liquidity, everyone else in between smart enough will grab as much as possible for themselves.

on the 2nd part, the original owner has sold his interest to private equity guys and got rewards with many perks, and I think he is doing fine for himself and maybe his family, not his employee of course.

 

[trendlover]

Quote from jem:

I have to agree with the comment why the heck did the founders son or grandson sell for 1x sales if he loved his boats and his business so much.

Especially with a hit jet boat on his hands.

That sales is only after he goes out of the country to sell his boats to people who do not pay the luxury tax. Before that he was having money problems. He made money overseas, pay down his debt of the company, then sell to the private equity firm.
So that company was having money problem before, the son fixed that with oversea sales, then he sold.
I think what bylo is thinking that the (first)equity company buy with leverage,(25% cash, leverage for the balance). Then that equity firm sell 51% to ANOTHER private equity who buy with debt. Now the company who control the company share have more debt. That debt effects the yacht company.

 

[Nattdog]

this type of financial parasitism is a product of our fascist central banking system. Private equity are the ones smart enough to be at the end of the fire hose of new money and credit created by the fed and the fractional reserve banking cartel, who then could reinvest it in real businesses. Their irrationally low cost of capital allowed them to extract maximum value for themselves at the expense of the rest of society.

Those who think this is a paranoid criticism of the free market need to realize we do not have a free market. Our Banking system is a state sponsored cartel that leaches off productive society via expansionary bogus credit policies. The government and its crew of crony "capitalists".

 

[zdreg]

Quote from IanMacQuaide:

How about all the Private Equity firms get together and start buying countries?
Argentina? Brazil? Costa Rica?
I'm actually half serious.
If Red Adair and Boots and Coots could literally put out the very fires of Hell, (which they could, literally!)due to American ingenuity, why can't we buy countries?

you are another clueless ridiculous American who cannot accept the fact that the american era of dominance is in the past. why not Brazil buying America. even half serious is not half funny.

the same goes for american clowns who would like to take over Canada.

http://www.independent.co.uk/news/b...se-1798713.html

 

[piezoe]

Same old story. Private Equity uses leverage to raid a companies treasury and take over the company. The principles pay themselves first, making huge profits and leave behind a debt ridden company. Another example of what has become an epidemic in the US, viz., people at the top who are paid far in excess of their productivity, while people at the bottom are paid much less then their productivity warrants. Unbridled Capitalism, like all other unbridled -isms, falls prey to human nature; in this case greed.

 

[limitdown]

Quote from lrm21:

Boo Fucking Hoo...

I missed the part where the Private Equity guys, kidnapped his family and threatened to send them back to him in pieces until he signed over the company.


WTF is it with all these anti-capitalist threads.

Capitalism is a 2 way street. He could of been happy running the family business and saving money for the rainy days to come instead he got greedy and now his business is going under.

Sheep get slaughtered.

bahh-aaaaahhhh