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Few people realize that the top private equity firms, such as Blackstone Group, Carlyle Group, and Kohlberg Kravis Roberts, have become the nation’s largest employers through the businesses they own. Using leveraged buyouts that load their acquired companies with loans, private equity firms have generated more than $1 trillion in new debt—which will come due just when these businesses are least likely to be able to pay it off.
Journalist Josh Kosman explores private equity’s explosive growth and shows how its barons wring profits at the expense of the long-term health of their companies. He argues that excessive debt and mismanagement will likely trigger another economic meltdown within the next five years, wiping out up to two million jobs.
He also explores the links between the private equity elite and Washington power players, who have helped them escape government scrutiny. The result is a timely book with an important warning for us all.
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|Publisher:||Penguin Publishing Group|
|Sold by:||Penguin Group|
|File size:||1 MB|
|Age Range:||18 Years|
About the Author
Josh Kosman has been covering the financial industry for twelve years. He is a business reporter at The New York Post, and has previously been an editor at Mergermarket.com, a senior writer for The Deal and senior reporter for the trade publication Buyouts Newsletter. He appears frequently in the media as a private equity and mergers expert. He lives in Brooklyn, New York.
Table of Contents
Part 1 The Buyout of America
Chapter 1 How Private Equity Started 19
Chapter 2 The Next Credit Crisis 35
Part 2 The LBO Playbook
Chapter 3 Doctoring Customer Service 55
Chapter 4 Lifting Prices 72
Chapter 5 Starving Capital 87
Chapter 6 Plunder and Profit 105
Chapter 7 Leaving Little to Chance 121
Chapter 8 A Different Approach 138
Part 3 What Now?
Chapter 9 The Next Great European Credit Crisis 155
Chapter 10 What's Next? 172
Chapter 11 Handling the Fallout 183
Appendix: The 1990s LBO Track Record 207