How did PE firms boost their own profits?

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Josh Kosman (Author & Reporter, New York Post)


John Kosman provides an example of the negative side of private equity acquisitions. He shares the story of the mattress industry including the three biggest mattress companies which were bought out and loaded up with debt. According to Kosman, the private equity firms that acquired the mattress businesses began to cut quality such as producing no flip mattresses with half the shelf life of previous products so that they could make a larger profit.

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About Author

Josh Kosman

Author & Reporter, New York Post

Josh Kosman is the author of The Buyout of America: How Private Equity is Destroying Jobs and Killing the American Economy. He has been covering the financial industry for nearly twenty years. Josh is a reporter for the New York Post, a former editor at Mergermarket.com and a former senior writer for The Deal and Buyouts Newsletter. He appears frequently in the media as a private equity and mergers expert.

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