A case study in profits and job losses - The Boston Globe

Josh Kosman, author of a new book predicting the impact of private equity in the next financial meltdown, has penned an interesting opinion piece in today's Boston Globe. He uses a local political debate as a jumping off point to discuss how a certain approach to equity investment has proven quite adept at creating profits for a very few, at the expense of both investors and the firms whose takeover they have financed. Notable is his presentation of how gutting a firm's R&D has negatively impacted its competitiveness and profitability.

Yet another argument for keeping a firm in the hands of those who believe in its mission, rather than those whose sole motive is to exit, with paper profits, at all costs.

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