How did the ESOP collapse at Bain and Co after Bill Bain and other fellow execs cashed out their shares?
It is my understanding that Bill Bain and the other executives he had around the board that wanted to cash out their shares realised that, Bain and Company being a management consultancy, didn't really have any worthwhile tangible or intangible assets, and so they just shopped around at various sell-side firms until they found a valuation they liked, and got the company to borrow the funds it needed to buy them out.
That money was supposed to be used to set up an ESOP. What happened to the ESOP, where did they borrow the funds from for the share buybacks, and how can I learn more about this, pretty much?
