Originally Posted by
Sunfish
The Virgin IPO will be hyped to the stratosphere by Bain and its minion like Red69. Howevr Bain has "Form" in these matters...
Their strategy is not only to recover their investment, with interest, but to sink their claws in very, very deeply into the future revenue stream from the company for years after the IPO.
They do this by creating a stack of liabilities and cost streams in the company before they sell it. The average investor misses these because they are buried in the fine print. SUre Virgin will make a lot of money, but the investors wont see any of it, Bain creams it off for years.
Typical ploys:
- a management agreement between Bain and various Virgin entitiies.
-- ditto for consulting agreements.
- Loading the company with debt and paying itself huge "management fees" before the IPO - sucking all the free cash out of the business.
- preferential long term leasing deals.
An example:
https://www.reddit.com/r/occupywalls..._and_fraud_is/
Based on previous form you are probably correct, but don't you think potential investors etc may have some idea of their track record and look at the fine print a little more closely? Just saying