The vulture capital model typically works like this: 1. A private equity firm borrows money to acquire a company in a leveraged buyout. 2. The company being purchased is forced to pay for the loan for its own acquisition. 3. The company’s valuable assets such as real estate are sold off. Often the company’s real estate is sold to an investment fund run by the vulture capitalist. The company then has to pay rent for the facilities it used to own. 4. High dividends are paid to shareholders and to the vulture capitalist often requiring the company to take out...
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