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This ought to be interesting-
This thread has 14 replies. Displaying all posts.
Post 1 made on Monday January 21, 2019 at 08:21
highfigh
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Guitar Center has bought an AV integration company in Chicago- if they run that the way they handle things with their own vendors, I expect a lot of unpaid bills and other fallout.

[Link: prnewswire.com]

[Link: marketwatch.com]
My mechanic told me, "I couldn't repair your brakes, so I made your horn louder."
Post 2 made on Monday January 21, 2019 at 11:13
Impaqt
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I imagine theres only one person thats super happy and excited about this...
I'm no engineer, but I did stay at a Motel 6 last night!
Post 3 made on Monday January 21, 2019 at 11:24
Mac Burks (39)
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Comcast struggles with their "field team". I don't know what else to call the technicians and management people. This field team has a single company with a single set of rules and way of doing things and they struggle.

The point I am trying to make here is that Everytime I hear about small businesses being aquired and rolled up I immediately think "when will this blow up?"

Guitar Center lacks the monopolistic hold on their customers that Comcast has. From those articles it looks like they are broke. How on Earth will they survive long enough to tame design/engineering/service/installation teams from these rolled up companies?

IMO "rollups" are just cash grabs for a few at the top. Everyone else loses.
Avid Stamp Collector - I really love 39 Cent Stamps
Post 4 made on Monday January 21, 2019 at 12:17
Fins
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I just looked at the website for the company they bought. Under the residential categories I think I saw about 8 different manufacturer interfaces. Im sure this will work out fine...

Meanwhile, back at the hall of justice, Im reading this while waiting on Centurylink to show up to fix the network on a project where they convinced the client they were the best choice for the IT support. Im 4 hours into my day with my thumb up my ass
Civil War reenactment is LARPing for people with no imagination.

Post 5 made on Monday January 21, 2019 at 12:24
Mac Burks (39)
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On January 21, 2019 at 12:17, Fins said...
I just looked at the website for the company they bought. Under the residential categories I think I saw about 8 different manufacturer interfaces. Im sure this will work out fine...

Meanwhile, back at the hall of justice, Im reading this while waiting on Centurylink to show up to fix the network on a project where they convinced the client they were the best choice for the IT support. Im 4 hours into my day with my thumb up my ass

Could be worse, at least you are getting paid. Most of the time i have to pay for that kind of action.
Avid Stamp Collector - I really love 39 Cent Stamps
Post 6 made on Monday January 21, 2019 at 15:56
Hasbeen
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If done right, I think it's a brilliant idea.  (Not that I think they'll do it right).

As we all know Gibson is struggling, Fender's not much better off.  People simply aren't playing instruments like they did when people were awesome and folks like Jim Hendrix were walking the Earth.

They're obviously looking to diversify the portfolio, and they think AV & automation integration is a good play. That should actually give all of you guys the warm and fuzzies about the future of the industry.

And maybe start trying to increase your revenues so you can get bought out too!  :)
Post 7 made on Monday January 21, 2019 at 19:07
davidcasemore
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On January 21, 2019 at 11:24, Mac Burks (39) said...
IMO "rollups" are just cash grabs for a few at the top. Everyone else loses.

I agree. Just look at all of the past "mergers" that made things (product and service) worse. It's comical when they buy one or more companies who's products overlap.

Nortek? Honeywell? LeGrande?
Post 8 made on Monday January 21, 2019 at 19:15
3PedalMINI
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On January 21, 2019 at 15:56, Hasbeen said...
If done right, I think it's a brilliant idea. (Not that I think they'll do it right).

As we all know Gibson is struggling, Fender's not much better off. People simply aren't playing instruments like they did when people were awesome and folks like Jim Hendrix were walking the Earth.

They're obviously looking to diversify the portfolio, and they think AV & automation integration is a good play. That should actually give all of you guys the warm and fuzzies about the future of the industry.

And maybe start trying to increase your revenues so you can get bought out too! :)

Being bought by a fledgling company in move that makes about as much sense as my township van ordinance.
The Bitterness of Poor Quality is Remembered Long after the Sweetness of Price is Forgotten! - Benjamin Franklin
OP | Post 9 made on Tuesday January 22, 2019 at 09:28
highfigh
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On January 21, 2019 at 11:24, Mac Burks (39) said...
Comcast struggles with their "field team". I don't know what else to call the technicians and management people. This field team has a single company with a single set of rules and way of doing things and they struggle.

The point I am trying to make here is that Everytime I hear about small businesses being aquired and rolled up I immediately think "when will this blow up?"

Guitar Center lacks the monopolistic hold on their customers that Comcast has. From those articles it looks like they are broke. How on Earth will they survive long enough to tame design/engineering/service/installation teams from these rolled up companies?

IMO "rollups" are just cash grabs for a few at the top. Everyone else loses.

GC has been broke for a long time- they were owned by Bain Capital and from the link, it was Bain that created the debt problem. That has caused collateral damage- they owe Fender and Gibson close to $1Billion and if GC were to default, those companies could fail.

[Link: pitchbook.com]
My mechanic told me, "I couldn't repair your brakes, so I made your horn louder."
OP | Post 10 made on Tuesday January 22, 2019 at 09:30
highfigh
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On January 21, 2019 at 15:56, Hasbeen said...
If done right, I think it's a brilliant idea. (Not that I think they'll do it right).

As we all know Gibson is struggling, Fender's not much better off. People simply aren't playing instruments like they did when people were awesome and folks like Jim Hendrix were walking the Earth.

They're obviously looking to diversify the portfolio, and they think AV & automation integration is a good play. That should actually give all of you guys the warm and fuzzies about the future of the industry.

And maybe start trying to increase your revenues so you can get bought out too! :)

Gibson is a different case because Henry is an idiot. Good thing Gibson finally replaced him.
My mechanic told me, "I couldn't repair your brakes, so I made your horn louder."
Post 11 made on Tuesday January 22, 2019 at 09:52
buzz
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I don't know why a company would structure a deal with Bain Capital because Bain always ends up with the capital. Maybe, the company can dig out from under the debt.
Post 12 made on Tuesday January 22, 2019 at 11:54
Mission Systems
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Having spent some brief time at the company that was acquired, I am perplexed by this acquisition. While the company does excellent numbers and is a beast in the Lutron shade business I fail to see how this helps GC as the back-end processes of the acquired business were sorely lacking in plan, execution, and processes.

That said, kudos to anyone who can build a business in this industry and sell it! that is no small feat...
"Hope is for suckers and fools"
Post 13 made on Tuesday January 22, 2019 at 14:49
rmalbers
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On January 22, 2019 at 09:52, buzz said...
I don't know why a company would structure a deal with Bain Capital because Bain always ends up with the capital. Maybe, the company can dig out from under the debt.

That's the whole point of the transaction, a private equity firm buys a debt free cash cow, then they put a bunch of debt on their balance sheet and use the money for another 'adventure/investment'. It's done all the time at all different transaction amounts.
BTW: Don't get the impression that I like it or anything! I hate gov. BS as much as the next person but I wish they would pass some kind of law or something to limit the amount of debt they can load on a company when they pull this, like maybe 20% or some percent so they can't put a level of debt on a company that just kills it.

Last edited by rmalbers on January 22, 2019 14:59.
Post 14 made on Tuesday January 22, 2019 at 22:47
davidcasemore
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On January 22, 2019 at 14:49, rmalbers said...
That's the whole point of the transaction, a private equity firm buys a debt free cash cow, then they put a bunch of debt on their balance sheet and use the money for another 'adventure/investment'. It's done all the time at all different transaction amounts.

Bain = Mitt Romney

BTW: Don't get the impression that I like it or anything! I hate gov. BS as much as the next person but I wish they would pass some kind of law or something to limit the amount of debt they can load on a company when they pull this, like maybe 20% or some percent so they can't put a level of debt on a company that just kills it.

That sounds like Elizabeth Warren talking!
OP | Post 15 made on Wednesday January 23, 2019 at 10:08
highfigh
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On January 22, 2019 at 22:47, davidcasemore said...
Bain = Mitt Romney

Not for a long time, but yeah. It's great that MBAs can grind every penny out of a company, but foisting debt off so they can look like they're solvent is BS (not the college degree).
My mechanic told me, "I couldn't repair your brakes, so I made your horn louder."


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