2min chapter

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531. Should You Trust Private Equity to Take Care of Your Dog?

Freakonomics Radio

CHAPTER

Leveraged Buyouts - Toys R Us

Toys R Us was a profitable company with KKR and Vornado and Bain bought it. The buyout partners loaded up Toys R Us with debt, sold off a lot of their real estate to pay off that debt and left the stores with expensive leases. Applebaum told us about a paper by Brian Iash, a finance professor at Cal Poly which analyzed the target firms in leveraged buyouts.

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