Linked by Thom Holwerda on Tue 5th Feb 2013 14:29 UTC
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Member since:
2005-12-04
Obviously it's speculative, but this kind of transaction often goes badly. The company will buy out existing shareholders with a combination of cash on hand and new debt. The result is a company with fewer owners, but also fewer options: it is no longer financially in a position to embark on any serious investments, although it can make cuts into existing operations.