I did wonder why suddenly MFC were making good surf fins.
However, as FCS has a not-so-strong-as-others surf system, I really hope they don't water down MFC's quality products. We've all seen aquisitions before where the smaller sport gets killed off in the product lineup and the tax writeoffs in that big loss funds something they really wanted to do....
If Pio is still involved I am confident. But really hope MFC involvement in windsurf prevails and they continue to make their good G10 stuff not all RTM etc
Buy out contracts//company acquisitions usually involve an 18 month+ management hand over, minimum. There is a hell of a lot to learn across an international distribution business so key staff will no doubt be obligated to hang on for a period and would have had the heads up.
In many cases it's not about the product as you don't want to break what is already working. There may well be a saturation point that's been reached as a whole for fin manufacturers. The only way to grow the company is to buy your competition. You effectively grow your percentage of a given market and maybe get some new distribution that was previously unachievable. And yes, the practice eventually leads to monopolies. Thnx capatilism!
Select to expand quoteBrent in Qld said..There is a hell of a lot to learn across an international distribution business so key staff will no doubt be obligated to hang on for a period and would have had the heads up.
By key staff, so you mean those with shares or options? How else could they become obligated - if they are "only" employed or contracted key staff, does the purchasing company just dangle a really good offer in front of them?
I'm just interested to know as I've never been in that situation.
On a related point - is the technology to create good foils at a competitive price capital intensive and therefore only available to bigger companies? I can understand how it could well be like that.
^^ I would regard key staff as those that know the important elements of running the business. These could be share holders, contractors or employees.
In today's market good people are bloody hard to find, let alone keep so you'd be making sure to keep these knowledge holders happy by some mechanism.
