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LBO in Eve ? Possibility ?
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Levija Saplina
Ken Interplanetary Communication
#1 - 2011-12-16 18:19:52 UTC
Is it ?

I've been considering it for a while, and the lack of actual institutional lenders makes the whole concept a bit hard to swallow, especially since this is a virtual world with no real boundaries to scamming, I am not sure that a corp owner would let himself be talked into a LBO. He would most likely walk away with whatever he could if this started to happen.

Thoughts ?
Tasko Pal
Spallated Garniferous Schist
#2 - 2011-12-16 18:50:10 UTC
Sure, nothing prevents it from happening. You can borrow money, pay it to a corp owner and have ownership transferred to you. Presto! Leveraged Buyout.

The trust issue means you'll have a strong chance of someone taking the money and running. Though there are ways to reduce that risk (such as using third parties for escrow who have a long record of reliable transactions).
Levija Saplina
Ken Interplanetary Communication
#3 - 2011-12-16 19:08:18 UTC
My idea was more that due to the lack of institutional lenders in EVE (well there are actually none), the risk involved in LBOs might be a bit hard to swallow for regular lenders.

Because let's face it, you don't do an LBO for a corporation that makes 2 bil a month in trading. Just like you don't dive into an LBO scheme for a small company that generates a million USD a year.

LBOs are rather more used for multi billion USD companies, and in the case of EVE I would want to do an LBO if I could buy myself a corporation that produces motherships and has a mining backbone to support it. We're talking probably 50-60 bil of assets.

And the biggest risk is loosing the corp members who have no contracts with the company as employees would have in real life. So you might end up purchasing something that is rendered useless 24 hours after. The risks in EVE are so high that in my opinion, barely no lender could stomach it (even the ones with hundreds of billion in their wallet). I'm not saying they would get bankrupt by it, I'm saying that the level of risk would be unacceptable to them.
OllieNorth
Recidivists Incorporated
#4 - 2011-12-16 20:35:47 UTC
Corporations in EvE, even the large ones, generally run like RL startups. Most of the interaction is based on personal relationships, so buying the company is generally useless, as the people in the corp would quite possibly leave since their friend has also left. On top of that the non-contract nature of employment also makes it different.

TL;DR No, not likely.
Florestan Bronstein
Ministry of War
Amarr Empire
#5 - 2011-12-16 21:41:27 UTC
Levija Saplina
Ken Interplanetary Communication
#6 - 2011-12-16 21:51:29 UTC
Florestan Bronstein wrote:
http://www.eveonline.com/ingameboard.asp?a=topic&threadID=1251932&page=1

next time do your research before posting


Cool, next time be a bit more polite before posting please.

I was interested in the idea, you brought me a part of the answer, not the whole answer. So don't be cocky.
Florestan Bronstein
Ministry of War
Amarr Empire
#7 - 2011-12-16 22:04:58 UTC  |  Edited by: Florestan Bronstein
Levija Saplina wrote:
Florestan Bronstein wrote:
http://www.eveonline.com/ingameboard.asp?a=topic&threadID=1251932&page=1

next time do your research before posting


Cool, next time be a bit more polite before posting please.

I was interested in the idea, you brought me a part of the answer, not the whole answer. So don't be cocky.

You asked "Is it possible?"

The whole answer is "Yes"

As a bonus my answer was also a pointer towards some answers to your GAAP questions... seeing how Varo is an accountant who actually bothered to produce balance sheets for One Stop that adhere to his adaption of RL accounting principles and who did encounter some of the issues you addressed in your thread in the process of doing so.

But of course you wouldn't know that as you can't be bothered to do your own research before asking people to help you in reinventing the wheel.
Levija Saplina
Ken Interplanetary Communication
#8 - 2011-12-16 22:10:24 UTC
Florestan Bronstein wrote:
Levija Saplina wrote:
Florestan Bronstein wrote:
http://www.eveonline.com/ingameboard.asp?a=topic&threadID=1251932&page=1

next time do your research before posting


Cool, next time be a bit more polite before posting please.

I was interested in the idea, you brought me a part of the answer, not the whole answer. So don't be cocky.

You asked "Is it possible?"

The whole answer is "Yes"

As a bonus my answer was also a pointer towards some answers to your GAAP questions... seeing how Varo is an accountant who actually bothered to produce balance sheets that adhere to his adaption of RL accounting principles and who did encounter some of the issues you addressed in your thread in the process of doing so.

But of course you wouldn't know that as you can't be bothered to do your own research before asking people to help you in reinventing the wheel.


I did not ask for help, I offered a discussion on the subject. I simply hinted at the mere possibility of creating a GAAP, and that if there was an interest then MAYBE people would like to participate in it. Some people other than yourself thought the idea was interesting.

You seem to be the kind of person who loves putting words in people's mouths even though they meant something completely different. Don't know what bite your ass this morning but you seem to have a serious case of butt hurt over something. I strongly suggest you take it somewhere else because to be honest, I don't really think your input is going to be worth anything.
Bath Sheeba
Another Success Story
#9 - 2011-12-19 03:12:39 UTC
*gets out bag of popcorn and flame retardant suit*

*sits down to watch the show*