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Basic Formula:
1. Buy a GOOD selling company with a trusted name brand... and lots of loyal customers.
2. Cheapen the product, cut staff, and stop all product development/engineering to put it out the door as cheap as humanly possible, while allowing the machinery to wear out.
3. Quality goes to crap, and keeps getting worse... but keeps selling until the public slowly figures it out...
4. Squeeze every dollar out of the business until it finally dies.

5. Find another trusted business, buy it out, and repeat...
 

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Just to play devils advocate here...........Everybody blames these big Corporations for ruining everything but no one places any blame on these companies for selling out to them. Not like they're putting a gun to their head and making them sell.

To me the biggest problem when all of these small companies get bought up and placed under one big cooperate umbrella is that it kills competition and in turn innovation.
 

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What is the aim? VS keeping said company running well and outputting good product? Short term profit vs long term profit....? Toxic management style, inability to run a company long term?
 

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Race Winning Brands (RWB) is owned by a private equity firm and it appears to be running quite successfully. The next ten years or so will tell the story.
Same scenario at Total Seal. Funding provided by a private equity group. Again, time will tell. Hopefully all of these companies will continue to thrive and they will continue to be successful as long as the current management teams are allowed to make major decisions relative to corporate operations.
 

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Don't know what this private equity firm will do, but there seems to be a pattern with many private equity firms. They buy a company, take every dime out of it, and put nothing back into it, until it can no longer run, then file bankruptcy. Look at what happened to Crane. When they filed bankruptcy, most of their equipment was worn out, or broken. Many of their cam grinders were cannibalized for parts, to keep the other grinders running.
Private Equity is mostly, a wealth transfer machine.
 

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Race Winning Brands (RWB) is owned by a private equity firm and it appears to be running quite successfully. The next ten years or so will tell the story.
Same scenario at Total Seal. Funding provided by a private equity group. Again, time will tell. Hopefully all of these companies will continue to thrive and they will continue to be successful as long as the current management teams are allowed to make major decisions relative to corporate operations.
When the next recession hits, that'll be the "tell all".
 

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Many of these companies were founded a good number of years ago. Some of the founders / owners have passed on and the family does not want the business. In other cases the founders / owners have reach an age where they would like to retire and enjoy the rest of their life doing something else. In most cases the founder was the innovator. Apple has not been the same since Steve Jobs passed on.

Stan
 

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Corporations.... NO GOOD.
You cant get any bigger than Summit.
I tried ordering two pulleys direct from the small, family owned March Performance. $50 each in price. They wanted a week to deliver it and $36 to deliver it! I dont mind paying a bit more when I order from a smaller company, but 40% of the purchase price is a bit much for two small pulleys.
Summit delivered them for free next day.
 

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Many of these companies were founded a good number of years ago. Some of the founders / owners have passed on and the family does not want the business. In other cases the founders / owners have reach an age where they would like to retire and enjoy the rest of their life doing something else. In most cases the founder was the innovator. Apple has not been the same since Steve Jobs passed on.

Stan
No one is forced to sell their aftermarket auto business to anyone. Its a choice the owners make.
 

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Some info I heard from an Edelbrock person is that they fired all there old experienced expensive staff, replaced them with 20-30 year olds, and are cutting alot of their slow moving old products. It makes sense for them to move, as someone has mentioned, they own alot of prime SoCal real estate. They could make big bucks selling all of that.
 

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Some info I heard from an Edelbrock person is that they fired all there old experienced expensive staff, replaced them with 20-30 year olds, and are cutting alot of their slow moving old products. It makes sense for them to move, as someone has mentioned, they own alot of prime SoCal real estate. They could make big bucks selling all of that.
The business is dying. I dont blame the owners one bit for selling it off.
 

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Just to play devils advocate here...........Everybody blames these big Corporations for ruining everything but no one places any blame on these companies for selling out to them. Not like they're putting a gun to their head and making them sell.
People who have owned a small business for a long time eventually want to retire. They often don't have huge 401K's, and count on what they get for the business for as a major part of their retirement... especially if they don't have a kid who is fully immersed in the business as an active partner.
 

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Discussion Starter #37
Some info I heard from an Edelbrock person is that they fired all there old experienced expensive staff, replaced them with 20-30 year olds, and are cutting alot of their slow moving old products. It makes sense for them to move, as someone has mentioned, they own alot of prime SoCal real estate. They could make big bucks selling all of that.
Your source is 100% spot on. Edelbrock last spring let a ton of experienced people go. And yes, getting rid of many products.
 

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Your source is 100% spot on. Edelbrock last spring let a ton of experienced people go. And yes, getting rid of many products.
Also shit-canning new products that were in development. I was working with them on developing a head, manifold and cam package for the BB Mopar.
 

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Also shit-canning new products that were in development. I was working with them on developing a head, manifold and cam package for the BB Mopar.
Mike isn’t that BS? How much time, effort and money did you have in that?

A little over ten years ago, their head selection was excellent. Had a Ford 390 which seem to always problems with threads on the manifold/headers, they were the only ones I could find a descent head for but did VJ them.They had heli coils in there from the start! Have had descent luck out of the sbc victor jr heads after a VJ
 
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