You claim it is unethical to “plunder’ a struggling company. On what basis? I say itt is unethical to continue to burn through capital and waste resources on a failing concern when those resources can be put to use more effectively elsewhere. And that includes the people currently working for the poor performing company. In order to save a struggling company, somebody has to be able to correctly diagnose the problem and then effectively execute a recovery plan. That is not always possible. It is easy for someone to say, “I could have saved that company”. If that is the case, then they should have mobilized the capital and resources necessary to do it and than have done so.

Sometimes, buy out firms attempt to save a company and it fails and they lose their capital. This is guaranteed to happen. These firms continue to exist because their successes outweigh the failures. It is the nature of business risk.

Anyone who claims that it is unethical to liquidate a failing firm does not understand the nature of risk.