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Author Topic: Possible GC PSAV partnership?  (Read 9248 times)

RYAN LOUDMUSIC JENKINS

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Possible GC PSAV partnership?
« on: November 07, 2013, 10:20:12 AM »

http://www.reuters.com/article/2013/10/23/us-psav-sale-idUSBRE99M1EB20131023

How long would it take for Bain to leverage PSAV into bankruptcy, causing all of their vendors to take massive losses which would in turn raise the prices to us to make up for the losses while PSAV would end up with all of those products and services for the cost of in house attorneys rather than actually having to pay real money for it.

This is NOT good for our industry.
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Tim McCulloch

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Re: Possible GC PSAV partnership?
« Reply #1 on: November 07, 2013, 01:02:06 PM »

The reason for this:  GC is losing money and PSAV makes money (they bought out Swank AV last year).

I agree this is a bad, bad deal.
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RYAN LOUDMUSIC JENKINS

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Re: Possible GC PSAV partnership?
« Reply #2 on: November 07, 2013, 07:01:07 PM »

The reason for this:  GC is losing money and PSAV makes money (they bought out Swank AV last year).

I agree this is a bad, bad deal.

GC is ONLY losing money because of the extremely high dept bourdon placed on them by Bain Capital and their way of doing business.  While I don't know facts first hand, a buddy of mine who is a very long time employee of GC told me that GC had almost zero debt when Bain Capital bought them.
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Caleb Dueck

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Re: Possible GC PSAV partnership?
« Reply #3 on: November 07, 2013, 08:44:59 PM »

GC is ONLY losing money because of the extremely high dept bourdon placed on them by Bain Capital and their way of doing business.  While I don't know facts first hand, a buddy of mine who is a very long time employee of GC told me that GC had almost zero debt when Bain Capital bought them.

I'd be surprised if GC's only, or even primary, problem is Bain.  Survival of the fittest.   "Let's get rich by being cheap!". 
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Justice C. Bigler

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Re: Possible GC PSAV partnership?
« Reply #4 on: November 07, 2013, 10:35:32 PM »

Survival of the fittest.   "Let's get rich by being cheap!".

Hey, it Worked for Uli Behringer.
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Tim McCulloch

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Re: Possible GC PSAV partnership?
« Reply #5 on: November 08, 2013, 09:31:20 AM »

I'd be surprised if GC's only, or even primary, problem is Bain.  Survival of the fittest.   "Let's get rich by being cheap!".

We lose 10% on every widget, but we'll make up for it in volume. ;)
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Lee Buckalew

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Re: Possible GC PSAV partnership?
« Reply #6 on: November 08, 2013, 12:10:06 PM »

GC is ONLY losing money because of the extremely high dept bourdon placed on them by Bain Capital and their way of doing business.  While I don't know facts first hand, a buddy of mine who is a very long time employee of GC told me that GC had almost zero debt when Bain Capital bought them.

I personally know of two projects that GCPro bid FAR under cost in a number of areas just to attempt to drive competitors out of business.  They were doing this on many projects from what I had heard in an attempt to have short term losses function in their favor by driving out the competition.
I guess it didn't work.

Lee
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John Roberts {JR}

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Re: Possible GC PSAV partnership?
« Reply #7 on: November 08, 2013, 12:52:53 PM »

http://www.reuters.com/article/2013/10/23/us-psav-sale-idUSBRE99M1EB20131023

How long would it take for Bain to leverage PSAV into bankruptcy, causing all of their vendors to take massive losses which would in turn raise the prices to us to make up for the losses while PSAV would end up with all of those products and services for the cost of in house attorneys rather than actually having to pay real money for it.

This is NOT good for our industry.
I'm not sure what GC has to do with this.

PSAV having 45% market share sounds good for them but bad for customers and competition. Deep pockets getting involved may look to increase market share with more acquisitions and then take advantage of near monopoly by raising prices where they can get away with it. Of course there will be winners and losers.

JR
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RYAN LOUDMUSIC JENKINS

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Re: Possible GC PSAV partnership?
« Reply #8 on: November 08, 2013, 02:50:54 PM »

I'm not sure what GC has to do with this.


JR

Bain Capital owns GC.
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Jordan Wolf

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Re: Possible GC PSAV partnership?
« Reply #9 on: November 12, 2013, 07:39:14 AM »

http://www.reuters.com/article/2013/10/23/us-psav-sale-idUSBRE99M1EB20131023

How long would it take for Bain to leverage PSAV into bankruptcy, causing all of their vendors to take massive losses which would in turn raise the prices to us to make up for the losses while PSAV would end up with all of those products and services for the cost of in house attorneys rather than actually having to pay real money for it.

This is NOT good for our industry.
I'm not familiar with Bain or it's past dealings with other companies, but am certainly interested in the outcome, as I am employed by PSAV.  All of these dealings are above my pay grade, and I wish I knew more, but I guess I'll just have to spectate along with everyone else.
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John Roberts {JR}

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Re: Possible GC PSAV partnership?
« Reply #10 on: November 12, 2013, 10:16:06 AM »

I'm not familiar with Bain or it's past dealings with other companies, but am certainly interested in the outcome, as I am employed by PSAV.  All of these dealings are above my pay grade, and I wish I knew more, but I guess I'll just have to spectate along with everyone else.

Bain capital is where Presidential candidate Romney worked and made a pile of money. The company was demonized during the campaign to tar Romney with the same brush. They are not a charity but a large investment firm that extracts value from troubled assets. Sometimes that involves beefing up a challenged company, sometimes putting it out of it's misery profitably. Whether this is good or bad for PSAV depends on which group they fall in. I expect new management to run a tighter ship either way.

I do not have any first hand experience nor have I researched Bain Capital specifically, but I know enough to discount campaign related mud slinging. 

If Bain should own both GC and PSAV, it seems logical that any synergies between them would be explored. 

JR 
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Dustin Campbell

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Re: Possible GC PSAV partnership?
« Reply #11 on: November 12, 2013, 02:04:43 PM »

Bain is a bad player - look what they did during the economic down turn in the auto industry - they did engage in multiple anti competitive business practices bordering on illegal - but that is not to say all other holding companies that are active in the mergers and acquisitions market engage in as well- just google Bain capital lawsuit

---think Gordon Gekko 
« Last Edit: November 12, 2013, 02:09:45 PM by Dustin Campbell »
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Jordan Wolf

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Re: Possible GC PSAV partnership?
« Reply #12 on: November 19, 2013, 04:41:12 PM »

Hey All,

I figured I'd update this thread.  An affiliate of Goldman-Sachs has acquired PSAV.
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Jordan Wolf
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Frank Czar

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Re: Possible GC PSAV partnership?
« Reply #13 on: November 22, 2013, 05:36:16 PM »

Hi Guys,

So what are some opinions on what this may mean for PSAV?
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John Roberts {JR}

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Re: Possible GC PSAV partnership?
« Reply #14 on: November 22, 2013, 05:55:29 PM »

I wonder if the timing of this deal has anything to do with the Volker rule supposed to be finished and in effect by end of this year? (Rule affects valuation of such assets, etc)

PSAV was purchased by Kelso for around $400M in 2007. This looks like a profitable flip. How much did it change in 2007? This looks like rich guys selling to other rich guys.

Back in 2007 we had a silly credit bubble bursting, today we have central bank easing keeping interest rate unnaturally low and inflating assets. Who know if re-arranging the deck chairs on the poop deck will change anything below deck? (not me).

JR
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drew gandy

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Re: Possible GC PSAV partnership?
« Reply #15 on: November 23, 2013, 11:37:17 AM »

PSAV has shed quite a bit of their "top" in the past 2 years including the iconic CEO.  A few things seem to have improved but it still comes off as a company where the people at the top don't have a clue about what actually happens on the ground.  This acquisition seems to be more of the same.

Conversely, I worked an event for a high end hotel chain a few weeks ago and was surprised when the CEO mentioned gaff tape in his speech.  I found out that this particular company has a principle of requiring all managers to work every position in the hotel so they know what the work actually entails.  I suspect he knows something about AV. 

I'm curious if 'Goldman AV' will buy up more companies in the coming years since the elephant in the room is the contracts with the hotels they occupy.  More market share might not mean much if the competition is from vendors outside the hotels (who don't have to give 50% off the top to the hotel for every single invoice). 

 

PSAV was purchased by Kelso for around $400M in 2007. This looks like a profitable flip. How much did it change in 2007? This looks like rich guys selling to other rich guys.

(not me).

JR
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ProSoundWeb Community

Re: Possible GC PSAV partnership?
« Reply #15 on: November 23, 2013, 11:37:17 AM »


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