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Isn't this the standard private equity playbook? Buy, hold, and flip? Though Softbank isn't a VC and I haven't heard of mass cost-cutting after they buy somet
by Hongwei 6y ago
Isn't this the standard private equity playbook? Buy, hold, and flip? Though Softbank isn't a VC and I haven't heard of mass cost-cutting after they buy something.
- bluedevil2k 6y agoPrivate equity would take on a lot of debt, pay themselves bonuses, then flip the company.
- stu2b50 6y agoVCs actually don't do that, though. VCs invest earlier and usually for a smaller, non controlling stake. PEs do the buy complete company, often through an LBO, "restructure", flip for a profit.