richardhutnik said:
And this is good how for the company in question? |
Because if that not happened simmons likely would of closed two decades though.
In the worst case scenario... a company like Simmons, which was already failing miserably gets to keep it's doors open a while longer and pay it's workers a while more.
In the best case scenario... it succeeds and becomes extremly popular and profitable. Like many leverage buyout success stories.
The crucial aspect your missing is that the company that does bring a leveraged buyout to the table is bringing something. Credibility.
Otherwise... why would a leveraged buyout ever happen? The owners would just get loans based on their own assets. (Well and then fail because they probably aren't good owners in the first place... but still.)
Levereged buyouts will happen only because of the credibility and expeirence of the firm who takes over.
Additionally if they end up with too many winners and not enough losers... there credibility takes a hit, and they can no longer afford to buyout companies this way.
So though they don't lose monetary wise there is plenty of reason to not go around tanking buisnesses.
