Value extraction

Value extraction is a euphemism for how private equity firms loot businesses for short-term profit, which causing substantial harm to the community, the employees, and others.

The term means stripping value out of a company in order to return higher short-term returns to investors. Its goal is to "deliver investor returns by weakening the company – often lead to unsustainable debt levels and poorer quality services. This in turn can have a damaging effect on people’s lives and a significant impact on their human rights, including employment rights and the rights to health and housing."