Bowlero, the biggest bowling company in the world, has grown rapidly in recent years. Fueled by private equity groups, the firm’s expansion has ruined the beloved pastime for many while its executives pull in massive profits.
You know, the funny thing is that nominally, the point of PE is to take a struggling asset, get it back on its feet, and sell it for more than you bought it for. It’s flipping for businesses. That honestly doesn’t sound bad, it sounds like probably a good thing when you put it like that. IRL, though, it just ends up being vulture capital all the way down.
Yea, I’d saying that a company seeking outside investors or trying to bring on managers or consultants… these aren’t inherently bad things - it’s just that in practice it’s fucking awful.
In our modern capitalist system the flow diagram is basically: team/founder starts a company, company does well and builds a customer base, team/founder cash out, PE/profit targets force under investment in company health, company gets worse, new team/founder outcompetes… though a huge problem at the moment is that having a billion dollar slush fund can really draw out being outcompeted i.e. Uber/literally anything in silicon valley.
And that’s how it should be. All day, I am always thinking of what a world would it be like, if companies and corporations dedicated their efforts to make things better if only to flip it. It’d be far better off than just leaving things to shit and allowing it to be shit.
The problem with it is that all of the wrong people you can think of possible, are in charge of doing these things. They think more of themselves than others.
You know, the funny thing is that nominally, the point of PE is to take a struggling asset, get it back on its feet, and sell it for more than you bought it for. It’s flipping for businesses. That honestly doesn’t sound bad, it sounds like probably a good thing when you put it like that. IRL, though, it just ends up being vulture capital all the way down.
Yea, I’d saying that a company seeking outside investors or trying to bring on managers or consultants… these aren’t inherently bad things - it’s just that in practice it’s fucking awful.
In our modern capitalist system the flow diagram is basically: team/founder starts a company, company does well and builds a customer base, team/founder cash out, PE/profit targets force under investment in company health, company gets worse, new team/founder outcompetes… though a huge problem at the moment is that having a billion dollar slush fund can really draw out being outcompeted i.e. Uber/literally anything in silicon valley.
And that’s how it should be. All day, I am always thinking of what a world would it be like, if companies and corporations dedicated their efforts to make things better if only to flip it. It’d be far better off than just leaving things to shit and allowing it to be shit.
The problem with it is that all of the wrong people you can think of possible, are in charge of doing these things. They think more of themselves than others.