BMC Going Private In $6.9 Billion Deal

itwbennett writes "In a much-anticipated move, IT infrastructure management software vendor BMC has agreed to be acquired for $6.9 billion by a private investment consortium headed up by Bain Capital and Golden Gate Capital. The deal is expected to close this year."

Efficient? Never in a LBO.

[ReallyEvilCanine]

The first thing that will happen is that the golden parachutes of the execs who okayed this will be repacked once they can no longer influence it, and their money will most likely be tied in corporate paper which will become worthless because...

The buyers will pay themselves huge "consulting" fees and borrow at least three times the company's value/worth, spending none of it on growth and everything on themselves and their premier shareholders. The hollowed out shell will be saddled with impossible debt as jobs are wiped out, shipped away, and a fragile shell of a company will pretend as long as it can that it's still viable, scrrewing everyone and everything in its past.

You can watch their m.o. in the histories of Kay-Bee Toys, Dunkin Donuts, and Continental Bakeries just to name a few off the top of my head.