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Old 11-18-2008
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all good points.

VC/PE is standing on the sidelines for the most part - and for the most part are expecting double digit returns - that would be hard to believe by acquiring a boat business - unless they planned on retooling for something else.

that said - IRG capital claims they have investors - and would be interesting to see what the business plan looks like...hopefully sufficient due dilligence was done...




Quote:
Originally Posted by night0wl View Post
I wish it were just the economy/commodity cost trap. This is mostly around leverage. Big companies are having trouble raising short term working capital and are at risk of default. I'm talking major retail brand names like Linens & Things, Sound Advice...etc. Thousands of employees, hundreds of locations...deep trade accounts, and yes, even cash on hand!

Now, how does that play with small businesses, which lets face it, most of our great brands really are. Even Catalina I'd say is a "smallish" business which doesn't have access to leverage that a Group Beneteau does.

It used to be "excess liquidity in the system looking for a home" would invest in things returning 7,8...9% a year. Now, it seems like a return of less than 22% is unheard of in terms of private equity. G'luck meeting that debt coverage APR selling boats!
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