What are Private Equity Buyouts

The speaker expresses his disapproval to private equity buyouts.  He mentions that private equity firms make their money by taking vulnerable companies, buying them up, and selling the good assets.  Many times, they do not have a good understanding of the business they are buying, rather, they are flexing their financial muscle which will allow them to make a quick buck.

They put a little money down and borrow additional funds to purchase the company.  They then cut labor costs by outsourcing and laying off experienced workers, take a hefty management fee for running the company, and then sell of all the good assets on the tax payers dime. 

Workers and the communities that they reside in, as well as the tax payers and the rest of the country are not better off with this sort of business practice.