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[John Roberts {JR}]

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 

[Dustin Campbell]

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 

[Jordan Wolf]

Hey All,

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

[Frank Czar]

Hi Guys,

So what are some opinions on what this may mean for PSAV?

[John Roberts {JR}]

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

[drew gandy]

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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