To: The United States House of Representatives and The United States Senate
Capital Investment Fairness & Equity Assurance
This would require that all sales of businesses be appraised and verified as a prerequisite of permitting the sale of one business to another. Banks alone cannot not be the sole arbiter, but some government agency that must insure the transaction is not a precursor to wholesale pillaging of embedded long term assets - namely employees or unused credit lines.
This would be similar to consumers being required to have a house appraised before it is approved for financing, as a precursor to the contract being drawn up. Purpose is to avoid large money interests conducting business that is not genuinely in the best interests of any company and its employees.
All too often such transactions are a means to pilfering pension funds, racking up enormous company debt, and massive layoffs to repay exorbitant investor profits.
This would be similar to consumers being required to have a house appraised before it is approved for financing, as a precursor to the contract being drawn up. Purpose is to avoid large money interests conducting business that is not genuinely in the best interests of any company and its employees.
All too often such transactions are a means to pilfering pension funds, racking up enormous company debt, and massive layoffs to repay exorbitant investor profits.
Why is this important?
To require the SEC to genuinely access company valuations for all mergers and acquisitions such that sellers and buyers must contract on actual valuations of assets. Purpose would be to remove incentives for sales of business for wildly more than what they're worth due to deeply embedded assets that can only be realized by mass lay-offs or pilfering of accumulated long term assets.