You are viewing a single comment's thread from:

RE: Web 3.0 To Counter The Control Of Private Equity

in LeoFinance15 days ago

When a company is saddled with more debt, the cash flow is affected since it has a higher cost to service the debt. That means there is less money available to do other things for the business.

Basically many PE firms look to slash costs, make the numbers look better, and ride the market wave by selling into the bull. The core of the business isnt much better. Actually, it is worse because it how has the debt.