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Why do distress investors typically NOT have a detailed operational thesis? Friendliness with management leads to biased opinions Since control of the company is certain,
Why do distress investors typically NOT have a detailed operational thesis?
Friendliness with management leads to biased opinions
Since control of the company is certain, existing debt and equity holders do not need to be persuaded by this thesis
Uncertainty about the process and of gaining control, as well as lack of information about the company, make doing so difficult
Distress investors typically invest in young companies where value is created through multiple expansion, not operational improvements
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