Their business model, Morgenson says, widens the income gap by extracting wealth from the many to enrich the few. But it's hard to know whether a company is owned by a private equity firm because PEFs are shrouded in secrecy. The ultimate goal is to sell off the newly acquired company in a few years, scoring a big profit for the PEF. The plunderers she's referring to are private equity firms, PEFs, which typically buy companies, then lay off employees and cut costs, services, benefits in order to expand profits. That's what my guest Gretchen Morgenson writes in her new book. The place where you buy your coffee and doughnut, your child's pre-K learning center, your loved one's nursing home, your dentist or dermatologist's office, the ER and the ambulance that took you there and your pet care provider may be owned or overseen by plunderers.
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