Then after thousands and thousands of workers get laid off, and after pensions get raided, after stores close and weeds are growing up in the parking lot, those private equity outfits walk away with their pockets stuffed with cash. Private equity firms like to tell a nice story about how they buy up failing businesses and make them better. But that is not how they work in the real world. There's a reason why Richard Gere's character in Pretty Woman ended up realizing he's the bad guy and turning over a new leaf. So what do you do with the companies once you buy them? (00:39–00:48)
CLAIM
Asserts that private equity firms claim to improve failing businesses, but do not actually do so in practice.
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