According to a new report by the Wall Street Journal – Mitt Romney may want to tone down his private sector business experience at investment firm Bain Capital. Looking at 77 companies that Bain Capital took over under Mitt Romney’s watch between 1984 and 1999 – the Wall Street Journal found that more than a fifth of all those businesses – 22% - went under after Bain’s involvement – leading to bankruptcy and massive layoffs. But Romney’s firm still walked away from the destruction with a lot of cash - roughly $1.4 billion in gains for investors during that time. The guy made a living laying off working Americans – and now he thinks he’d be the best guy to create jobs. Good luck making that argument in a general election.
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Sometimes pieces of the whole are worth lot more. 1+1+1 > 3 in asset valuation.
Geeze, how can you resist when a company A
is sitting on $100M cash.
physical asset is lets say $50M
IP worth $30M
people, on going biz is worth $80M
and lets say that the you can take over the company for $220M. $220M to take over total asset of $260M... $40M gain out of which to pay for the cost of taking over... It's a sure winner to making money. So why not? Mitt thought this was no brainer and so did his investors...
I do not support such scorched earth policy in making money. To me, this is blood money. No real asset nor value created. Bad for our society.