Obviously, it’s fun to watch companies buy other companies, and create huge conglomerates – but at the same time, it often just doesn’t make sense to me.
Don’t get me wrong, I love the guys at High End. If anyone deserves a payout, it’s Lowell and Richard (yeah, bob too I guess…) because it’s them who had the foresight and energy to build a highly respected brand. Along the way – sure, they’ve made mistakes – but in the end, they’ve not managed to hurt a successful brand name.
However… $55 million?? I have always heard that most offers were in the mid 20’s (and some less..) then all of a sudden someone comes in at double, or triple that amount. I am certain this had everything to do with a horrible dollar, and healthy Euro. The price is heavily discounted when you look at it that way. I just don’t understand the math though – but that’s just me.
The only problem is – the money isn’t going to those who deserve it most. The big winner on this deal is Generation Partners, who converted loans to equity and ended up owning a majority. Not sure what percentage the founders will receive, but I am sure it’s enough to put a smile on each of their faces after all of the vultures have taken their cuts.
Congrats guys – and please, send any future buyers over here. I’d love an over-payment myself!!