Levereged buy-out means more employees will have to be fired.They lump debt on the station but do not share in the risk.

I find myself explain­ing Pri­vate Equi­ty this way. Many ask “How is this even legal?”  The con­se­quences are hid­den from the finan­cial reporters (who often report the merg­ers as a good thing) because the fir­ings hap­pen over time as the debt matures and refi­nanc­ing and/or reselling become imma­nent. The more debt there is from the cor­po­rate buy­out, the more employ­ees that will have to be fired so their for­mer salaries can go toward pay­ing off that debt.  For more infor­ma­tion watch a short video expert  here.

Leave a Comment

Your email address will not be published. Required fields are marked *