Originally Posted by
Squawk7700
I guess you need to ask yourself this question.... Foreflight might be the biggest and best in the USA, but is it actually profitable?
You don't spend a billion or two on Foreflight and rip it to shreds if it's going really well eh?
Estimates on the internet put Foreflight's value at around US$1 billion -1.5billion, or 10-15% of the total deal.
Isn't that what Private Equity do?
Not necessarily not profitable, but buy a company that is not making maximum profits, then strip away costs regardless of long term effect of such stripping away, sell and lease back property and assets, tart up the company to give an illusion of high profit, then sell to gullible investors, sometime/often mum and dad investors?
Thus the PE company are expert at getting out before the shaky shell of a company that is left falls in a heap?
Happened with Ansett under Murdoch and Abels, and Air NZ rued the day they bought it. Murdoch never wanted Ansett, just the TV network it owned.
Perhaps I am too cynical.