Bain Capital is a global alternative investment company based in Boston, Massachusetts. It specializes in private equity, venture capital and credit products. Bain Capital invests in various industry sectors and geographic areas. As of June 2014, the company manages more than $ 75 billion of investor capital on its various investment platforms.
The company was founded in 1984 by partner of consulting company Bain & amp; Company. Since the beginning he has invested in or acquired hundreds of companies including AMC Theater, Artisan Entertainment, Aspen Education Group, Brookstone, Burger King, Burlington Coat Factory, Canada Goose, DIC Entertainment, Domino's Pizza, DoubleClick, Dunkin 'Donuts, D & M Holdings, Guitar Center, Hospital Corporation of America (HCA), iHeartMedia, KB Toys, Sealy, Sports Authority, Staples, "R" Toys We, Warner Music Group, Fingerhut, The Weather Channel, and Apple Leisure Group, AMResorts and Apple Holidays.
In 2014, Bain Capital employs over 900 people. Bain Capital is headquartered at 200 Clarendon Street in Boston, Massachusetts with additional offices in New York City, Chicago, Palo Alto, San Francisco, Dublin, London, Luxembourg, Munich, Hong Kong, Shanghai, Mumbai, Tokyo and Melbourne.
The company, and its actions for the first 15 years, became the subject of political and media oversight as a result of a political career with Mitt Romney, especially his presidential campaign in 2012.
Video Bain Capital
History
1984 initial establishment and history
Bain Capital was founded in 1984 by Bain & amp; Company partners Mitt Romney, T. Coleman Andrews III, and Eric Kriss, after Bill Bain offered Romney a chance to lead a new business that would invest in the company and apply Bain's consultation techniques to improve operations. In addition to the three founding partners, the early teams included Fraser Bullock, Robert F. White, Joshua Bekenstein, Adam Kirsch, and Geoffrey S. Rehnert. Romney originally had a presidential title and managed a general partner or managing partner. He is then referred to as the managing director or CEO as well. He is also the sole shareholder of the company. Initially, the company had fewer than ten employees.
In the face of skepticism from potential investors, Romney and his colleagues spend a year to raise the $ 37 million needed to start a new operation. Mitra Bain put $ 12 million of their own money and sourced the rest from the rich. Early investors included real estate moguls Boston Mortimer Zuckerman and Robert Kraft, owners of the New England Patriots football team. They also include members of elite Salvadoran families who fled from the country's civil war. They and other wealthy Latin Americans invested $ 9 million primarily through a Panama-listed offshore company.
While Bain Capital was founded by Bain executives, it was not an affiliate or division of Bain & amp; The company but is a completely separate company. Initially, the two companies share the same office - in the office tower at Copley Place in Boston - and similar approaches to improve business operations. However, both companies have placed certain protections to avoid sharing information between both companies and Bain & amp; The company's executives have the ability to veto investment that poses a potential conflict of interest. Bain Capital also provides investment opportunities for Bain & amp; Company. The company initially provided a profit cut to Bain & amp; The company, but Romney then persuaded Bill Bain to surrender.
The Bain Capital team was initially reluctant to invest their capital. In 1985 things went bad enough that Romney considered shutting down operations, returning investors' money to them, and asking the partners to return to their old positions. The partners saw weak points in many potential transactions that in 1986, very little had been done. At first, Bain Capital focused on venture capital opportunities. One of Bain's earliest and most important venture investments is at Staples, Inc., an office supply retailer. In 1986, Bain gave $ 4.5 million to two supermarket executives, Leo Kahn and Thomas G. Stemberg, to open an office supply store in Brighton, Massachusetts. The fast-growing retail chain became public in 1989; in 1996, the company has grown to more than 1,100 stores, and by the end of fiscal year January 2012, Staples reached more than $ 20 billion in sales, nearly $ 1.0B in net profit, 87,000 employees, and 2,295 stores. Bain Capital ended up reaping almost seven times its net worth, and Romney sat on the board of directors of Staples for over a decade. Another very successful investment took place in 1986 when $ 1 million was invested in Calumet Coach medical equipment maker, which eventually earned $ 34 million. A few years later, Bain Capital invested in Gartner Group technology research, which ultimately returned a 16-fold profit.
Bain invested $ 37 million in capital in its first fund in twenty firms and in 1989 produced an annual profit of more than 50 percent. By the end of this decade, the second Bain fund, raised in 1987, had mobilized $ 106 million into 13 investments. As companies begin to manage the funds, each of these funds is run by a particular public partnership - which includes all Bain Capital executives as well as others - who are in turn controlled by Bain Capital Inc., the management company that Romney has full ownership control over. As CEO, Romney has a final decision in every transaction made.
1990s
Starting in 1989, the company, which started as a venture capital source investing in new companies, adjusted its strategy to focus on leveraged purchases and investment growth in more mature companies. Their model is to buy an existing company with money mostly borrowed against their assets, partner with existing management to apply Bain methodology into their operations (rather than acquisitions that are practiced in other leverage purchase scenarios), and sell them within a few years. Existing CEOs are offered large equity shares in the process, because Bain Capital's trust in emerging agency theory that CEOs must be bound to maximize shareholder value than any other purpose. By the end of 1990, Bain had raised $ 175 million in capital and financed 35 companies with combined revenues of $ 3.5 billion.
In July 1992, Bain acquired Ampad (originally American Pad & Paper) from Mead Corporation, which had acquired the company in 1986. Mead, who has had difficulty integrating Ampad products into existing product lines, generated cash of $ 56 million about sales. Under Bain's ownership, the company enjoyed significant growth in sales from $ 106.7 million in 1992 to $ 583.9 million in 1996, when it was listed on the New York Stock Exchange. Under the ownership of Bain, the company also made a number of acquisitions, including the SCM company's product writing in July 1994, the brand name of American Trading and Production Corporation in August 1995, WR Acquisition and Division Williamhouse-Delaware District, Inc. in October 1995, Niagara Envelope Company, Inc. in 1996, and Shade/Allied, Inc. in February 1997. Ampad's revenues began to decline in 1997 and the company laid off its employees and closed production facilities to maintain profitability. Employment declined from 4,105 in 1996 to 3,800 in 2000. The company ceased trading on the New York Stock Exchange on December 22, 2000 and filed for bankruptcy in 2001. At the time of bankruptcy, Bain Capital had a 34.9% stake in the company. The assets were acquired in 2003 by Crescent Investments. Bain's eight-year involvement in Ampad is estimated to have earned more than $ 100 million in profits ($ 60 million in dividends, $ 45-50 million of proceeds from shares issued after the company went public, and $ 1.5-2 million in fees annual management).
In 1994, Bain acquired Totes, a manufacturer of umbrellas and overshoes. Three years later, Totes, under the ownership of Bain, acquired Isotoner, a manufacturer of leather gloves.
Bain, together with Thomas H. Lee Partners, acquired Experian, TRW Inc.'s consumer credit reporting business, in 1996 for more than $ 1 billion. Formerly known as TRW's Information and Service System unit, Experian is one of the leading providers of credit reports to consumers and businesses in the US. The company was sold to Great Universal Stores for $ 1.7 billion just a few months after it was acquired. Other well-known Bain investments in the late 1990s included Sealy Corporation, a mattress manufacturer; Laundry Alliance System; Domino's Pizza and Artisan Entertainment.
Most of the company's profits are derived from relatively small number of transactions, with the overall success rate and failure of Bain Capital almost the same. One study of 68 agreements made by Bain Capital through the 1990s found that companies lost money or even break even on 33 of them. Another study that looked at the eight-year period after 77 offers at the same time found that in 17 cases the company went bankrupt or out of business, and in 6 cases Bain Capital lost all its investments. But 10 deal is very successful and represents 70% of total profit.
Romney had two transfers from Bain Capital during the first half of the decade. From January 1991 to December 1992, Romney served as CEO of Bain & amp; The company where he leads the successful turnaround of the consulting company (he keeps managing Bain Capital's general partner during this time). In November 1993, he took a leave for 1994 that failed to seat the US Senate from Massachusetts; he returned a day after the election in November 1994. During that time, Ampad workers broke down, and asked Romney to intervene; Bain Capital's lawyer asked him not to get involved, although he met with the workers to tell them that he had no active authority on the matter.
In 1994, Bain invested in Steel Dynamics, based in Fort Wayne, Indiana, a prosperous steel company that has grown to the fifth largest in the US, employs around 6,100 people, and manufactures carbon steel products with 2010 revenues of $ 6 , 3 billion for steel shipments. 5.3 million tons. In 1993, Bain acquired Armco Worldwide Grinding System steel mill in Kansas City, Missouri and combined it with a steel plant in Georgetown, South Carolina to form GST Steel. The Kansas City factory struck in 1997 and Bain shut down the factory in 2001 by sacking 750 workers when the company went bankrupt. The South Carolina plant was closed in 2003 but later reopened under different owners. At the time of bankruptcy it was reported $ 553.9 million in debt to $ 395.2 in assets. Bain reported a profit of $ 58.4 million, an employee pension fund having a liability of $ 44 million.
Bain's investment in Dade Behring represents a significant investment in the medical diagnostic industry. In 1994, Bain, along with Goldman Sachs Capital Partners completed the acquisition of Dade International's carveout, medical diagnosis division Baxter International in a $ 440 million acquisition. The private equity owner Dade merged the company with DuPont's in vitro diagnostic business in May 1996 and later with the Behring Diagnostics division of Hoechst AG in 1997. Aventis, the successor of Hoechst, acquired 52% of the combined company. In 1999, the company reported $ 1.3 billion in revenue and completed a $ 1.25 billion recapitalization that resulted in payments to shareholders. Dividends, taken along with other previous shareholder dividends resulted in an eightfold investment return to Bain Capital and Goldman Sachs. Revenue declined from 1999 to 2002 and despite efforts to cut costs through corporate layoffs entered bankruptcy in 2002. After the restructuring, Dade Behring emerged from Bankruptcy in 2003 and continued to operate independently until 2007 when the business was acquired by Siemens Medical Solutions. Bain and Goldman lost their remaining stock in the company as part of bankruptcy.
At the end of the decade, Bain Capital was on his way to becoming one of the top private equity firms in the country, after increasing the number of partners from 5 to 18, has 115 employees overall, and has $ 4 billion under management. The average annual return on investment of the company is 113 percent. It has made between 100 and 150 deals in which he acquired and then sell the company.
1999-2002: Departures Romney and political legacy
Romney took unpaid leave from Bain Capital in February 1999 when he was head of the Salt Lake Organizing Committee for the 2002 Winter Olympics. The decision caused chaos at Bain Capital, with another power struggle. Some partners went and founded the Audax Group and Golden Gate Capital. Other partners threatened to leave, and there was a prospect of eight-digit lawsuits filed. Romney worried that the bureau might be destroyed, but the crisis subsided.
Romney was not involved in the company's day-to-day operations after starting the Olympic position. They are handled by a management committee, consisting of five of the fourteen active partners left with the company. However, according to several interviews and press releases during 1999, Romney said he kept a part-time function in Bain.
During the leave period, Romney continues to be listed in a submission to the Securities and Exchange Commission as a "sole shareholder, sole director, Chief Executive Officer, and President". The SEC filing reflects the legal and ownership realities of the Bain Capital management company. In practice, former Bain partners have stated that Romney's attention is largely occupied by Olympic positions. He keeps in touch regularly with his colleagues, and travels to meet them several times, signing company and legal documents and taking into account his own interests within the company and for negotiating his departure. Bain Capital Fund VI in 1998 was the last Romney involved; investors worried that with Romney gone, the company would have trouble raising money for Bain Capital Fund VII in 2000, but in practice $ 2.5 billion was raised without much trouble. His former partner said that Romney had no role in assessing other new investments after February 1999, nor was he involved in directing the company's investment funds. Discussions on the final terms of Romney's departure continued during this time, with Romney negotiating to get the best deal he could get and his ongoing position as CEO and sole shareholder who gave him the influence to do so.
Although he had opened up the possibility of returning to Bain after the Olympics, Romney made his cross with politics in 1999. His separation from the company was completed in early 2002. Romney negotiated a ten-year retirement agreement with Bain Capital allowing him to receive passive earnings and interest as a retired partner in several Bain Capital entities, including purchase investment funds and Bain Capital, in exchange for ownership in the management company. As private equity business continues to grow, this deal will generate millions of dollars in annual revenue. Romney is the first and last CEO of Bain Capital; since his departure becomes final, it continues to be run by the management committee.
Bain Capital itself, and especially its actions and investments for the first 15 years, came under the scrutiny of the press as a result of Romney's 2008 and 2012 presidential campaign. Romney abandoned the absence and level of activity he had in the company during the period 1999-2002 also garnered attention.
Beginning 2000s
In 2000, DIC Entertainment chairman and CEO Andy Heyward partnered with Bain Capital Inc. in purchasing DIC management from The Walt Disney Co. Heyward continued as chairman and CEO of the animation studio, which has more than 2,500 and a half hours of programming in the Library. He bought Bain Capital interest in 2004 and took public company the following year.
Bain Capital started the new decade by closing its seventh fund, Bain Capital Fund VII, with over $ 3.1 billion of investor commitments. The company's most prominent investments in 2000 included the acquisition of $ 700 million of Datek, an online stockbroking company, and the acquisition of $ 305,000,000 KB Toys from Consolidated Stores. Datek eventually joined Ameritrade in 2002. KB Toys, financially troubled since the 1990s as a result of increasing pressure from national discount chains such as Walmart and Target, filed for Chapter 11 bankruptcy protection in January 2004. Bain has been able to recover the value of investment through the recapitalization of dividends in 2003. In early 2001, Bain agreed to buy a 30 percent stake, valued at $ 600 million, at Huntsman Corporation, a leading chemical company owned by Jon Huntsman, Sr., but the agreement was never completed.
With a large amount of capital committed in its new fund available for investment, Bain is one of a handful of private equity investors capable of completing large transactions in poor conditions from the 2000s recession. In July 2002, Bain together with TPG Capital and Goldman Sachs Capital Partners, announced a $ 2.3 billion purchase of Burger King from Diageo. However, in November, the original transaction failed, when Burger King failed to meet certain performance targets. In December 2002, Bain and his co-investors agreed to reduce the purchase price of $ 1.5 billion for the investment. The Bain Consortium has the support of the Burger King franchise, which controls about 92% of Burger King's restaurants at the time of the transaction. Under its new owner, Burger King underwent major brand improvements including the use of The Burger King's character in advertising. In February 2006, Burger King announced plans for an initial public offering.
At the end of 2002, Bain remained actively acquiring Houghton Mifflin for $ 1.28 billion, along with Thomas H. Lee Partners and Blackstone Group. Houghton Mifflin and Burger King represented the first two major club deals, completed since the collapse of the Dot-com bubble.
In November 2003, Bain completed an investment in Warner Music Group. In 2004, Bain acquired the Dolarama chain of dollar shops, based in Montreal, Quebec, Canada, and stores operating in Eastern Canadian provinces for $ 1.05 billion CAD. In March 2004, Bain acquired Brenntag Group from Deutsche Bahn AG (Out in 2006, sold to BC Partners for $ 4B). In August 2003, Bain acquired a 50% stake in Bombardier Inc.'s recreational products division, along with the Bombardier and Caisse de dÃÆ' Â © pÃÆ'Â't et placement du QuÃÆ' Â © bec, and created Bombardier Recreational Products or BRP.
Bain and 2000's boom
In 2004, a consortium of KKR, Bain Capital and real estate developer Vornado Realty Trust announced the acquisition of "R" Us Toys, a $ 6.6 billion toy retailer. A month earlier, Cerberus Capital Management, made a $ 5.5 billion offer for the toy and baby supplies business. The purchase of Toys 'R' Us is one of the biggest in a few years. Following this transaction, at the end of 2004 and in 2005, redemption became common and market watchers were stunned by the level of leverage and financing requirements acquired by the financial sponsors in their purchases.
The following year, in 2005, Bain was one of seven private equity firms involved in purchasing SunGard in a $ 11.3 billion deal. Partners Bain in the acquisition are Silver Lake Partners, TPG Capital, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts, Equity Equity Partners, and Blackstone Group. It represents the largest leveraged purchase completed since the takeover of RJR Nabisco in the late 1980s by utilizing a purchase boom. Also, at the time of its announcement, SunGard will be the largest purchases of technology companies in history, a distinction to be handed over to the purchase of Freescale Semiconductor. The SunGard transaction is also important in the number of companies involved in the deal, the biggest club deal being finalized at the time. The involvement of seven companies in the consortium was criticized by investors in private equity which assumed that cross ownership among firms was generally uninteresting.
Bain led the consortium, along with The Carlyle Group and Thomas H. Lee Partners to acquire Dunkin 'Brands. Private equity firms paid $ 2,425 billion in cash to parent company Dunkin 'Donuts and Baskin-Robbins in December 2005.
In 2006, Bain Capital and Kohlberg Kravis Roberts, together with Merrill Lynch and the Frist family (who had founded the company) completed a $ 31.6 billion acquisition from Hospital Corporation of America, 17 years after it was taken personally for the first time in management buy. At the time of its announcement, the purchase of HCA would be the first of several to set a new record for the largest purchase, surpassing the 1989 purchase of RJR Nabisco. This will be exceeded by the purchase of Equity Office Properties and TXU. In August 2006, Bain was part of the consortium, along with Kohlberg Kravis Roberts, Silver Lake Partners and AlpInvest Partners, which acquired 80.1% stake in the Philips semiconductor control unit for EUR6.4 billion. The new company, based in the Netherlands, renamed NXP Semiconductors.
During the boom of purchase, Bain was active in the acquisition of various retail businesses. In January 2006, Bain announced the acquisition of Burlington Coat Factory, a discount retailer that operates 367 department stores in 42 states, in a $ 2 billion purchase transaction. Six months later, in October 2006, Bain and The Blackstone Group acquired Michaels Stores, North America's largest art and craft retailer in a $ 6.0 billion purchase. Bain and Blackstone almost beat Kohlberg Kravis Roberts and TPG Capital in an auction for the company. In June 2007, Bain agreed to acquire HD Supply, Home Depot's wholesale construction supplies business for $ 10.3 billion. Bain, along with partners Carlyle Group and Clayton, Dubilier & amp; Rice, will then negotiate a lower price ($ 8.5 billion) when the initial phase of the subprime mortgage crisis has led to lenders seeking to renegotiate the acquisition financing requirements. Just days after the announcement of HD Supply's offer, on June 27, Bain announced the acquisition of Guitar Center, the leading music equipment retailer in the US Bain paid $ 1.9 billion, plus $ 200 million in assumed debt, representing a 26% premium to the closing price share before the announcement. Bain also acquired Edcon Limited, which operates Edgars Department Stores in South Africa and Zimbabwe for 25 billion rand ($ 3.5 billion) in February 2007.
Other investments during the purchase include: Bavaria Yachtbau, acquired for EUR1.3 billion in July 2007 as well as Sensata Technologies, obtained from Texas Instruments in 2006 for approximately $ 3 billion.
Since 2008
After the closing of the credit market in 2007 and 2008, Bain managed to close only a small number of large transactions. In July 2008, Bain, together with NBC Universal and Blackstone Group agreed to purchase The Weather Channel from Landmark Communications.
Subsequent investments include, but are not limited to:
- July 2008 - Bain, together with Thomas H. Lee Partners, acquired Clear Channel Communications.
- July 2008 - Bain acquires D & amp; M Holdings for $ 442 million.
- June 2009 - Bain Capital announces a deal to acquire a 9-23 percent stake in China electronics manufacturer GOME Electrical Equipment for $ 233-432 million.
- March 2010 - Bain acquires Styron (polystyrene, latex), a division of The Dow Chemical Company, for $ 1.6 billion.
- October 2010 - Bain acquires Gymboree for $ 1.8 billion.
- July 2011 - Bain acquires Securitas Direct AB along with Hellman & amp; Friedman
- January 2012 - Bain earns Physio-Control for $ 478 million.
- August 2012 - Bain Capital announces that it has signed an agreement to acquire a 30.49% stake in Genpact Ltd., the largest BPO/Call Center Outsourcing company in India (NYSE: G) from General Atlantic LLC and Oak Hill Capital Partners for $ 1 Billion US Dollars.
- October 2012 - Bain Capital acquires Apex Tool Group hand and power tools from Cooper Industries and Danaher Corporation for approximately $ 1.6 billion.
- May 2013 - Capital Betting and Investment Company Golden Gate Capital, GIC Private Limited and Insight Venture Partners entered into an agreement to purchase BMC Software for approximately $ 6.9 billion.
- December 2013 - Bain Capital acquires a majority stake in the clothing chain, Canada Goose Inc. Invest $ 20 million in Observeit, the leading provider of user activity record and auditing software.
- 2013 Bain buys Apple Vacations, AMResorts, Travel Impressions (from American Express), and Cheap Caribbean.com to form Apple Leisure Group.
- April 2014 - Bain Capital buys controlling stake at Viewpoint Construction Software, a construction-based software company based in Portland, Oregon.
- November 2014 - Bain Capital and Virgin Group announced that they are creating a new shipping line, Virgin Holidays Cruises.
- December 2014 - Bain Capital agrees to purchase four CRH divisions totaling Ã, Â £ 414 million, including its subsidiary, Ibstock.
- March 2015 - Bain agrees to buy Blue Coat Systems about $ 2.4 billion
- In 2016, the firm appointed Jonathan Lavine and John Connaughton to become joint managing partners, while also naming Steven Pagliuca and Joshua Bekenstein as co-chairman of the company.
- August 2017 - Bain acquires together with German Cinven company, Stada Arzneimittel.
- February 2018 - Bain agrees to acquire Bugaboo International for an undisclosed amount.
- March 2018 - Bain buys 19.99% stake in Tower Ltd owned by Suncorp.
Maps Bain Capital
Business and affiliation
The Bain Capital fund family includes private equity, venture capital, public equity, and leveraged debt assets.
Bain Private Equity
Bain Capital Private Equity has collected ten funds and invested in more than 250 companies. Private equity activities include purchases with leverage and capital growth in various industries. Bain began investing in Europe in 1989 through its London-based affiliate, Bain Capital Europe. Bain also operates international affiliates of Bain Capital Asia and Bain Capital India.
Bain Capital Private Equity consists of over 250 investment professionals, including 38 managing directors operating from offices in Boston, Hong Kong, London, Mumbai, Munich, New York, Shanghai and Tokyo, in early 2011.
Historically, Bain relied primarily on private equity funds, a collection of capital commitments from pension funds, insurance companies, endowments, funding, high-value individuals, state wealth funds, and other institutional investors. Bain's own investment professionals are the single largest investor in every fund. From 1993, when Bain raised its first institutional funding until early 2012, Bain has completed fundraising for 11 funds with total investor commitments of more than $ 38 billion, including private global equity funds and separate funds focusing specifically on investments in Europe and Asia. Since 1998, each of Bain's global funds has invested with coin investment funds that only invest in certain larger transactions. The following is a summary of private Bain's equity funds raised from early to early 2012:
Bain Capital Ventures
Bain Capital Ventures is a venture capital of Bain Capital, which is focused on seeds through end-stage equity growth, investment in business services, consumer, health, internet & mobile phones, and software companies. Bain Capital Ventures has raised approximately $ 1.53 billion of investor capital since 2001 in four investment funds.
The following is a summary of private Bain's equity funds raised from early to early 2012:
Since 2001, Bain Capital Ventures' major investments include DoubleClick, LinkedIn, Shopping.com, Taleo Corporation, MinuteClinic and SurveyMonkey.
Bain Capital Public Equity
Formerly known as Brookside Capital, Bain Capital Public Equity is a public equity affiliate of Bain Capital. Founded in October 1996, Bain Capital Public Equity's main objective is to invest in securities of public companies offering opportunities to realize a large long-term capital appreciation. Bain Capital Public Equity uses a long-term/short-term equity strategy to reduce market risk in the portfolio
Bain Capital Credits
Formerly known as Sankaty Advisors, Bain Capital Credit is a fixed income affiliate of Bain Capital, the manager of high-yield debt securities. With about $ 30 billion of assets under management, Bain Capital Credit invests in various securities, including leveraged loans, high yield bonds, depressed securities, mezzanine debt, convertible bonds, structured products and equity investments. Bain Capital Credit has about 140 employees, including 80 investment professionals across offices in the United States, Europe, Asia and Australia.
Appraisal and critic
Bain Capital's approach to applying its consulting expertise to the firms it invests is being widely copied in the private equity industry. Professor of the University of Chicago Booth School of Business Steven Kaplan said in 2011 that the company "came up with a very successful and highly innovative model and now everyone is using."
In his 2009 book The Buyout of America: How Private Equality Destroys Jobs and Kills the American Economy, Josh Kosman describes Bain Capital as "notorious for its failure to plow profits back into business," becoming the first large private equity firms to earn the most revenue from corporate dividends and other distributions. The potential revenue from this strategy, which may be the capitalist company's "hunger," is heightened by a 1970s court ruling that allows companies to consider the entire fair value of the company, not just their "hard assets," in determining how much money is available to pay dividend. At least in some instances, companies acquired by Bain borrow money to increase their dividend payouts, leading eventually to the collapse of financially stable businesses.
Investment gallery
References
Bibliography
- Kosman, Josh (2009). The Buyout of America: How Private Justice Destroys Jobs and Kills the American Economy . Hardcover Portfolio. ISBN: 1591843693.
- Kranish, Michael; Helman, Scott (2012). The Real Romney . New York: HarperCollins. ISBN 978-0-06-212327-5.
External links
- Bain Capital (company website)
- "The Company 'Does not Harm the Romney Company" article by Michael Luo and Julie Creswell at The New York Times June 22, 2012
Source of the article : Wikipedia
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