Question:
If Bain loans a company money when all other lending institutions have turned them down, are they saving it?
pdooma
2012-09-23 18:24:50 UTC
If Bain loans a company money when all other lending institutions have turned them down, are they saving it?
Nine answers:
?
2012-09-23 18:26:37 UTC
When they loan money, they assume management control, and slash jobs.
byhisello99
2012-09-23 18:49:15 UTC
Bain is a private equity firm. That means that it buys other companies or at least invests in them. When it invests it protects its investment by buying control of the company. The PE firms make money by turning around struggling companies and selling them for a profit.



Companies that are thriving and have a bright future do not turn to private equity firms. Rarely is a well-run and profitable company bought by a PE firm. Corporate raiders buy up profitable and well-run companies in order to strip out the best assets and sell them for more than they paid for the company in the first place. The business models of PE firms and corporate raiders have nothing in common.



The Obama campaign, which knows better, has portrayed Bain as a corporate raider. Journalists, who are supposed to call liars on the carpet, seem to lap it up and continue spreading the lies. A PE firm that owns a company that goes bankrupt loses money. Bain does not lose money. Therefore, the idea that it is a corporate raider is nonsense.



Much has been made of Bain outsourcing some jobs, including outsourcing some overseas. If you thought that "outsourcing" only meant sending jobs overseas, that is not the case. Most jobs outsourced by U.S. companies go to other U.S. companies.



When jobs are outsourced, including sent overseas, it is to try and save the rest of the company. Sometimes this works, sometimes it does not.



Think of PE firms as surgeons who only take on the most difficult and serious cases. The highly qualified surgeons who do this lose patients regularly; they only hope to save as many as they can. So, too, does a PE firm only take on companies that would probably die without an infusion of money and turn-around expertise. The fact that so few of the companies wind up "dying" is a tribute to the skill and dedication of the "surgeons" involved.



You have answers saying that Bain is a corporate raider (absolutely untrue), or that confuses a PE rescue of another company with LBO (leveraged buyout). The liars trying to convince people that Bain is fundamentally evil know they are lying. But, as long as journalists will not call them on the lies they can get away with it.



I am not a Republican, I have not decided to vote for Romney. I am a business professional who knows a lie when he sees one.
anonymous
2012-09-23 18:31:37 UTC
Not if Bain loads it up with debt, fires everyone and still walks away with a handsome profit. That's what they did more than once.



The government saved many jobs at GM and its suppliers.
anonymous
2012-09-23 19:09:27 UTC
Bain buys the company, jettisons the pension plan (leaving the Government to pick up the tab), sells whatever assets remain, then claims "We Built It!"
anonymous
2012-09-23 18:27:43 UTC
Bain does not "loan" a company money.



You really need to do some research on what a private equity company does when they come in and buy out a company (many of these buyouts are not even troubled companies).
sully
2012-09-23 18:28:05 UTC
From what I read, Bain took out loans on the companies behalf, then called bankruptcy and pocketed a sizeable cut of said loans.
anonymous
2012-09-23 18:30:39 UTC
No . Bain was / is a corporate raider whose sole purpose is to make money destroying a business . They take their millions in " fees " and move on .
Man In The Mirror
2012-09-23 18:28:03 UTC
It could be interpretated both ways. If so, then that'd mean his decision is neither saving or non saving.
Sarah
2012-09-23 18:28:16 UTC
Bain got millions in government bailouts. http://www.rollingstone.com/politics/news/the-federal-bailout-that-saved-mitt-romney-20120829


This content was originally posted on Y! Answers, a Q&A website that shut down in 2021.
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