The Bain Of Mitt Romney’s Existence

Just as with Ted Kennedy in 1994 and the Boston Globe in 2002, Mitt Romney’s vulture capitalist record has come back to haunt him, this time in Sunday’s New York Times.

After a Romney Deal, Profits and Then Layoffs

By the green-hued yardsticks of Wall Street, the 1990s buyout of an Illinois medical company by Mitt Romney’s private equity firm was a spectacular success.

Mr. Romney’s company, Bain Capital, sent in a team of 10 turnaround experts from Boston to ferret out waste, motivate executives and study untapped markets.

By the time the Harvard M.B.A.’s from Bain were finished, sales at the medical company, Dade International, had more than doubled. The business acquired two of its rivals. And Mr. Romney’s firm collected $242 million, a return eight times its investment.

But an examination of the Dade deal, which Mr. Romney approved and presided over, shows the unintended human costs and messy financial consequences behind the brand of capitalism that he practiced for 15 years.

Romney is (eternally) running for president on his business record but, the Times reports:

The White House . . . is already preparing a less flattering portrayal, trying to frame Mr. Romney’s record at Bain as evidence that he would pursue slash and burn economics and that his business career thrived by enriching the elite at the expense of the working class.

Helpful charts in the Dade deal:

 

Calculate it for yourself.

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2 Responses to The Bain Of Mitt Romney’s Existence

  1. Romney will have a tough job convincing voters that he’s not “The Guy Who Laid You Off”.

  2. Curmudgeon says:

    Except he didn’t lay YOU off.

    One must put in the mix what would have happened if the company had not turned around. Quite a few more would have been laid off.

    Yea, Bain’s return was somewhat obscene, but it was their money that went to the venture and could easily have been lost if things went boom. Are you saying that they had no business making a risky play?

    Your pay-off at the slot machines can be pretty staggering too!

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