Overpaid and Unaccountable
A Long Time In Finance
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Challenges of Businesses Borrowing Large Sums of Money
This chapter delves into the criticism faced by businesses, particularly private equity firms, for borrowing large amounts of money and prioritizing generating cash flows to repay debts. It discusses the historical shift towards prioritizing shareholder value over management perks, explores Milton Friedman's essay advocating for profit maximization, proposes solutions to address the negative aspects of private equity models, and considers breaking down equity holders in leveraged buyouts to hold firm controllers accountable.
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