ELI5- How does asset reconstruction work, and why do these companies buy failed businesses?
In: 2
A failed business doesn’t necessarily fail because it’s a bad business. Yes, sometimes someone opens a business in an already oversaturated market, but the more likely reason a business fails is simply due to mismanagement.
So, if it’s an actual viable business, stepping in and taking over and running it correctly can make it an actually profitable business.
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