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bucolic_frolic

(48,998 posts)
4. Adulterating the product to fund takeovers is standard operating procedure
Mon Oct 24, 2022, 03:58 PM
Oct 2022

Every quality product that gets bought out goes downhill in quality, durability, service. Paying the MBA's forces owners to reduce costs to pay for the personnel and new debt load. They trade off the brand name of the product until the public notices, then sales plummet so they load the ship with debt and pay the money to the owners and let the company go bankrupt. Then it gets bought out of bankruptcy court and the debt cycle rinses and repeats a couple times. Sell off the remaining good parts and shareholders can be soaked with the carcass in a final trip to bankruptcy liquidation. This is innovation, growth, maturity, decline, and end-cycle.

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