ASK HN: Is a worker-cooperative a model for sustainable and successful business?
netsp: Incidentally, Does anyone have a good resource for understanding leveraged buyouts and how they work? I understand that this broadly means funding the acquisition of a company by placing the debt on the target company's balance sheet but every explanation I have read just leaves  too many obvious holes: The goal is to buy a company for $100m and sell it for $500m. (why does such a gap exist and why are private equity funds the only ones jumping on it?) or Instead of taking on the equity themselves, the fund will place this debt on the target company's balance sheet, not its own and statements like target companies often have strong cash flow that can be used to service the loan (How does a company worth $100m take on $500m in debt without going bankrupt? If it can do this [I assume they would be paying very junk bond rates of 20% or so], that means that they could have paid that amount in dividends to the owners instead and should be worth a lot more then purchase price.)It reminds me of those hack video by Guy Kiyosaki about how rich people print money: I create a company and invest $10,000 in it. At $0.01 per share that is 1,000,00 share. Then I take the company to IPO and sell the shares for $1-$2 each. He then explains the math on whiteboard. $10,000 /0.01 * $1 - $10,000 = $990,000. Wow! This guy is one smart cookie.In any case, if you know any books, articles etc. that will make a dim person like me understand, please tell.