Private equity firms destroying america. Any thoughts?
So a small business or chain works hard turns a profit owns its store front and property etc.
Then a private equity firm (often bank?) Buy the land the store is on usually after the founder of said business has died. Now the business operating on privately owned land has to add rent to its costs. Driving up cost and thus prices.
If you were the local subway owner how much until you sell your own land to the private equity firm. For $1million? Usually its done by the franchise, as a whole. Jersey Mike sold all the property (land) their branches were on to private equity for $8 billion (usd).
Now every store must pay rent too. driving up prices.
Is there a better way? Dont sell out!
Then a private equity firm (often bank?) Buy the land the store is on usually after the founder of said business has died. Now the business operating on privately owned land has to add rent to its costs. Driving up cost and thus prices.
If you were the local subway owner how much until you sell your own land to the private equity firm. For $1million? Usually its done by the franchise, as a whole. Jersey Mike sold all the property (land) their branches were on to private equity for $8 billion (usd).
Now every store must pay rent too. driving up prices.
Is there a better way? Dont sell out!
