johnsonma :
You reasoning makes logical sense but does the ends justify the means? I think the company that he did bankrupt were entirely his/bain's fault. He took business's that were doing very well, set unrealistic revenue goals, took out an incredible amount of debt and then bailed once the company had made them some money and it was apparent they were not going to be successful much longer. Maybe destroying people's lives is an overstatement, I am sure they were eventually able to recover. However was their struggle with job relocation and the stress it brought on their families worth it so Bain could make a quick few mil?
Which specific company are you referring to? Most of it was venture capital, providing money to a company with expectations of a return. They also footed the loss if it went under in most cases. They assumed the risk and were paid back first, regardless of under funding a pension or anything like that.
Creditors will almost always get their money first since that's where the money came from.
Such is life in losing a job and having to relocate. You are not entitled to anything. It isn't like they bought a company and 3 months later it went under. They had bought one failing company, tried making it profitable, the people went on strike, a year later it was closed down (Not-profitable) and then their other factor was closed a year or two later. Again, maintaining something that is not making a profit is not feasible.
How many people can thanks Bain Corp for their continued success in life thanks to Staples alone? You are trying to blame Bain Corp (Romney) for mistakes that the previous owners had made. If you hired 100 workers for a job that required 75, then you sold out because you were failing and pocketed money and left it up to another company (Bain) to cut the staff and make the company profitable, who is to really blame?
About 7-8 years ago, the very large corporation I worked for had bought a small father & son multi-million dollar factory. They employed around 800 workers, made millions in revenue but were losing money each year. The owners sold out to the tune of $42 million and walked away and let our company take it over. I spent 9 weeks out there implementing our IT equipment, training the users, etc. They were so far behind that we had to let go most of the office staff. They didn't want to change their ways.. they were still using paper/pencil in a factory production environment. We put in computers and wireless scanners to speed up the process and create efficiency. The people were going to keep their jobs if they would retrain. They didn't. Within 1 year of acquiring that company, there wasn't a single original employee left. They weren't able to go out and find the jobs paying the same, they didn't have the skillset.. I kept in touch with one guy about my age (owner's son) who didn't have to work because of all the money. He wasn't happy we let them all go, but they were the reason his family business was failing. 2 years in the production line increased from 22% efficiency to 64% efficiency. On average, we were losing $500k a week in production because of inefficiency. We were trying to achieve 84% production capacity for a world class standard. It took 3 years until that location became profitable and when it did, they were pulling in 18-20% profits a year after taking massive losses, plus the initial $42 million investment.
I have experience in going into failing businesses, identifying required change, and implementing solutions via IT and LEAN/Sigma Six solutions. The employees were making the company fail. They're all out of jobs but when I left the company they had over 500 quality people employed and were still making a profit. Employees were paid better and all.
Yep, I assisted in ruining 200+ people's lives; people who didn't want to be successful. I sleep well still. I see it as I assisted in over 500 people having better lives and making the location successful.. and that doesn't even count moving up the chain through the company because of the success at the ground level, or the families of those hard workers, or the consumers who purchased a higher quality product than the previous low quality product. Edit - Also, the products were CHEAPER because of increased efficiency and having a lower overhead. The giant evil corporation I worked for did some really great things for a lot of people. I'm proud to say I was part of that.
Just because someone is employed, doesn't mean they're the right person for the job, or capable of doing the assigned job.
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