In the late 90s, The Knot became the go to internet site for brides, wedding planners, and vendors, eventually generating 20 million in annual cash flow.
Private equity took on hundreds of millions in debt to buy the company. ““To pay the interest on that much debt would essentially cripple a business.” …Any company in that position would need to cut costs and generate a lot of revenue.”
And so, it’s alleged they committed fraud and generated false leads for the ad buying vendors.
How can private equity secure hundreds of millions in loans for what is clearly going to destroy a company?
Is the snake of capitalism eating its tail?