It also has nothing whatsoever to do with venture capitalism. That’s another bit of misdirection tossed into the discussion. There is nothing wrong with venture capitalism, whether practiced by Bain or anyone else.
NONE of the examples in the film “King of Bain - When Mitt comes to Town” represented venture capitalism. These were examples of targeting going concerns, taking them over, saddling them with insurmountable debt to enrich the predator, selling off the physical assets, firing the employees, and leaving town before dawn.
This is not a description of venture capitalism, which consists mostly of funding promising start-ups for a piece of the action.
Venture capitalism is risk taking; corporate plunder is just unadorned taking and giving nothing back.
Romney and Associates were sued on more than one occasion for professional mismanagement and unjust enrichment. In the case involving Dade International it seems that there was enough evidence that Bain was denied some of the stock proceeds or something.
The article I read was short on details, but I thought I might be able to find more later this week.
Romney used a formula, a tactic that was very close to the house flipping that was going on in the early 2000s. In house flipping, you bought a house at a low cost, gutted out the old interior finishings, replaced with new finishings and sold it for a profit. Instead, with Bain Capitol, it was company flipping where you bought a company, took its capital assets, flipped them for a profit and spit out the company and its employees like a carcass. It is hard for most people to understand how it was done unless you are an economist. Once you understand what Bain Capitol was doing, then you understand the callus nature of its operation. Governor Rick Perry was correct. It was vulture capitalism. I say it was capitalism that had mutated into a cancerous growth.