Row 14334
Content Data
This page contains data entry 14334 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.
Man you should read up on how private equity works.
Say there is a company with no debt who agrees to be acquired by a PE firm for $100M. To pay the previous owners, the PE firm will put up $20M and *the company itself* will take out a loan for $80M. Now the company is $80M in debt and it had nothing at all to do with the company's operations. The $80M loan is fully the responsibility of the company, not the PE firm.
The sellers do their best to convince the PE firm that this loan will be paid, and the PE firm does their best to convince the bank that the loan will be paid. Everyone is incentivized to exaggerate the prospects of the company. A slight deviation from the sales forecast can lead to bankrupcy.
| Field | Value |
|---|---|
| text | Man you should read up on how private equity works. Say there is a company with no debt who agrees to be acquired by a PE firm for $100M. To pay the previous owners, the PE firm will put up $20M and *the company itself* will take out a loan for $80M. Now the company is $80M in debt and it had nothing at all to do with the company's operations. The $80M loan is fully the responsibility of the company, not the PE firm. The sellers do their best to convince the PE firm that this loan will be … |
| label | r/news |
| dataType | comment |
| communityName | r/news |
| datetime | 2024-05-20 |
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| url_encoded | Z0FBQUFBQm5Lak9MU1hLNkpKZWkyZGhKdDBGdFR1bDA5eWhPVE5DWllNa1VWNVZxZ3FGdy1ualU5TnVkekJCQ2hVOEcxdllmVGpNNVJqNm9vdmJHTEVNMk1FNFhYSVVneEpYNnZuci1mTFdHMG96enF3bE9uZks1eU5CTUMydjNBdEN4V2RNeEVfTGJIOURoYmVmSWpYUG56RkdINVhSWmRjOFZudUlXeXBhdVl1Y1hLTWdxcVdhTkhyTzRseGdwcHE3VVYtd052Wk9C |
Raw Record
{
"text": "Man you should read up on how private equity works. \n\nSay there is a company with no debt who agrees to be acquired by a PE firm for $100M. To pay the previous owners, the PE firm will put up $20M and *the company itself* will take out a loan for $80M. Now the company is $80M in debt and it had nothing at all to do with the company's operations. The $80M loan is fully the responsibility of the company, not the PE firm.\n\nThe sellers do their best to convince the PE firm that this loan will be paid, and the PE firm does their best to convince the bank that the loan will be paid. Everyone is incentivized to exaggerate the prospects of the company. A slight deviation from the sales forecast can lead to bankrupcy.",
"label": "r/news",
"dataType": "comment",
"communityName": "r/news",
"datetime": "2024-05-20",
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}
Entry Information
- Entry ID: 14334
- Repository: Axioma AXP
- Dataset: arrmlet/reddit_dataset_36
- Total Entries: 100,000