Well you nailed it with the last question. That wasn't 200 million profit. The sale is 200 million profit. After staff, development, product etc, they only saw a fraction of that as profit.200 million in an all cash transaction, sounds pretty mafia-esque.
Explain this to me, because I am no business woman. Why would you sell your company for the amount of money that said company makes in one year? 200 million is a lot no matter what but it seems that it would be a better idea to hold onto it and make that much every year. And If they had a 2007 sales of 200 million, how much of that ended up being profit? Business people teach me.
You'd have to ask their accountants.Any idea what fraction. Like less than 5%. I would imagine a company like canondale has a huge overhead.
Thanks, this is what I was interested in knowing.A company will typically sell for 7 times it's ebitda (that's earnings before interest, taxes, depreciation and amortization). .
Hmm, where did you hear that from, Specialized? Seriously though. Cannondale has been financially stable ever since Pegasus took them over after the bankruptcy. The rumor mill is always a flurry with wrong info.thats probably gonna be good for cannondale, their stocks have been dropping for a long time, they've been border line going out of business for a while too
It's possible they weren't making any money. For example, a company I work for bought another company for about 200 million. That company does about 400 million in sales, but had actually been in the red the last few years (they lost 5 million two years ago). My company came in, cleaned house, and brought them back to positive last year. The main reason they bought the company wasn't for the immediate financial gain, but because they had control over a market they wanted. There's just so much going on in in these multi-million dollar deals. My company has a whole department dedicated to researching acquisitions.Any idea what fraction. Like less than 5%. I would imagine a company like canondale has a huge overhead.
Ahhhhhh, interesting. I am learning more and more. I would love to go back for an MBA just for the hell of it.Good News For People That Love Bad News
Love that album.
The main reason they bought the company wasn't for the immediate financial gain, but because they had control over a market they wanted. There's just so much going on in in these multi-million dollar deals. My company has a whole department dedicated to researching acquisitions.
That's bad ass American capitalism right there.The company I work for has bought out competitors, sold all the assets, fired the employees and discontinued all their products simply to remove them from the market.
"If you can't beat 'em, buy 'em."The company I work for has bought out competitors, sold all the assets, fired the employees and discontinued all their products simply to remove them from the market.
You'll get a replacement Huffyso if i break one of my frames, will i still get the lifetime warranty