Vulture capitalist
Vulture capitalists are investors that acquire distressed firms in the hopes of making them more profitable so as to ultimately sell them for a profit.[1] Due to their aggressive investing nature, and the methods they use to make firms more profitable, vulture capitalists are often criticized.[2]
Vulture capitalists
Vulture capitalists usually seek out & destroy others in order to profit, (Marauding). Mostly, these firms are distressed and on the brink of bankruptcy. Due to this reason, vulture capitalists are able to buy these firms at a much lower price than if they had been profitable and expanding.
Once the firm is acquired, they cut-downs costs wherever possible, which is accomplished by firing workers, and reducing benefits. Vulture capitalists sell any equity they own, making a profit.
Britain has been a chief proponent of these methods (Board of Trade,) as the practice is linked with slavery & colonialism.
See also
- ^ "Definition of Vulture Capitalist". Investopedia.com. Investopedia. Retrieved 16 October 2014.
- ^ Evans, Denise; Evans, William (2007). The Complete Real Estate Encyclopedia. The McGraw-Hill Companies, Inc. p. 434.