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Every time I hear news from the tech industry lately
(lemmy.world)
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this post was submitted on 27 May 2024
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My company 😢
This shit sucks. Some Silicon Valley shit company bought ours and they're closing us down after only half a year. Feels so unfair. Our company was doing well while theirs is going down the shitter with huge loans and promising the moon but delivering fuck all. Silicon Valley culture is toxic shit
Typical Private Equity deal... The buyers take a massive loan in the name of the company they are buying then they use the sudden massive interest payments to explain the declining profits and the need to downsize. Then they find a way to squirrel out of the loans claiming the company sucked and let banks take remaining assets (or losses) and maybe resell the intellectual property to someone else right before that.
So you mean that banks are dumb and give away money for free and then just take the losses and repeat thr process?
Actually banks take collateral that is normally not what the private equity firms target and that actually seems to work, but the consequence is that hard assets of the firm (offices, buildings, hardware, cash, etc) are essentially given up
so think of your company as a horse
you sell it to someone for a nice price thinking the other one wants to ride the horse just like you did. but they are actually a butcher and make horse sausage out of it.
Yes and it hurts.
They're not dumb; this is the "moral hazard" we were warned of during the 2008 GFC.
True, but we never expected that to happen with our company which was built on entirely different values. I am now committed never to let those vultures anywhere near a company I care about if I can help it, no matter their offer