Home Forums Hunting & Shooting Custom Rifles & Wildcats McMillan rifle stocks - Company sold??

I wonder how long before we have "pre-sale" McMillan prices vs. "post-sale" McMillan prices?



Travis

I'm hoping with the sale they will expand production.

Collectors will look for "pre-14" Mcmillans.

This makes me a little hesitant to order a new Mcmillan, until things are sorted out.

I was thinking the same. Often things go from great to crappy after a purchase with new management focusing on $ rather than the product, heavy turnover losing trained workers, production issues, quality issues, etc. Hopefully that won't be an issue here.

I like the way you all think and keep it up. Next McMillan in 12 weeks sounds good.

I hope to be wrong....

Most deals like this typically include an "earn out" agreement with previous owners so the the company doesn't turn to crap after the sale.

Owners of a recently sold company, suddenly with millions in their pockets, need an incentive to make the transition happen to protect the buyer. That is fairly standard proceedure.

DF

On the upside, Barnes sold out years back and look where they are now. It's always a "wait and see" when something like this happens.

I hope you're right.

Just don't want to see another Marlin fiasco.

I sent an e-mail and told them not to do that. So we're all good.



Travis

Most likely the sell price was determined by the income approach, i.e. future profits, hence a budget/projection in which the sell price was based upon. Now, more so than ever, its all about whatever it takes to meet that budget. All the investor cares about is return on the dollar. Who knows how that will turn out for us.

You're right.

Sometimes, the investor brings in capital to what may be an undercapitalized operation (the only kind I ever had anything to do with) and the visionaries can then grow their "baby" into what it should be.

Other scenarios, the "bean counters" take over and the visionaries/engineers/innovators are suddenly on the hind teat. I think that's what we're seeing with the Remington, Marlin fiasco. Ruger seems to have a handle on their operations.

IMHO,

DF

Whew...!!

Man, am I glad you had the foresight to do that, Travis...

DF

I agree, except when Ruger lets the iceberg sniper design new products.

Let me be the first to start a conspiracy...

It makes a business more attractive to investors to have a large backlog of orders. It is guaranteed revenue in the future. For a company to fall that far behind and yet refuse to invest in more equipment and staff makes me wonder.

At the same time, why would they invest in a 100k CNC, etc if they knew they were selling out.

That could make sense. Depends on what the buyer wants.

It could up the ante on the deal. I wouldn't do it unless it made sense. I'm sure they did what they needed to do. You position assets to max a sale.

DF

Let's hope the new owners see the need for some new machinery. Otherwise lead times are going to keep inching up until they are a year out.

The only other way to slow lead times is by raising prices to decrease demand, or to get a bad rep which also decreases demand.

What do I do, what do I do? Order right away to lock in the price? Wait and see if quality drops off? Order one of the two I need off the specials even though it's not exactly the way I want it but could make it work...?