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Notably, firms like Blackstone have a history of not just enhancing value in their acquisitions but, rather, leveraging financial engineering strategies to ensure profitability. Unfortunately, this often occurs at the expense of the companies they purchase, exemplifying a playbook filled with tactics that can leave businesses in ruins.

A Troubling Legacy

The legacy of private equity is littered with cautionary tales. Once-celebrated companies like Toys R Us, Payless Shoe Source, and Sears were acquired and stripped of their assets, only to face bankruptcy. The approach typically involves accumulating heavy debt while extracting value through management fees, asset sales, and dividends, often referred to as "vulture capitalism."