BMC Going Private In $6.9 Billion Deal 49
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."
Bad price to potential debt ratio (Score:5, Insightful)
This is the sad fate in store for companies that are relatively cheap to buy compared to how much debt they can still take on.
Some vulture capital [realclearpolitics.com] firm will swoop in, borrow a bunch of money to take them over, then force the poor company to pay them back for the takeover costs, plus every other last cent the victim is now capable of borrowing. They make millions (sometimes) billions without risking a cent once the takeover is complete.
Everybody wins. Well, except perhaps for the banks and their investors when the companies go backrupt. And the workers who thought they were dedicating their toil to making products people wanted, not creating temporary paper value for rich folks to come in and loot.
This is why they call themselves "job craters". They don't spell it that way in print of course, but we all know what they mean when they say it.