What does it mean for society when investors increasingly seek to “harvest” a company for a profitable sale? We looked into Bain’s impact on the health economy in more detail in “Sick Money.”
Here’s how it works: Target companies are fattened up like sacrificial animals on a diet of debt, much of which goes to pay the exorbitant fees charged by companies like Bain. That put intense pressure on their management to pump up short-term earnings by any means necessary. Jobs are lost. Companies go bankrupt. The harvest continues.