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Edited Date/Time
1/8/2022 5:52pm
Western Power Sports sold!
Wonder how this will affect Jason Thomas and the PulpMX show down the line.
I think Fly racing was helped by PulpMX and PulpMX got a good return from Fly.
Wonder if Fly will still be a corporate sponsor of the SX series down the line
The Shop
BP
I would see “they” kept him around for quite a long time….
I’m in no way trying to be a downer but I've been involved in a good-sized Tech acquisition. When you’re working for the company getting acquired… watch out! The company that buys you gives the nod to the person in the job, same job, to their own employee; not the person in the company being acquired. Also be on the look out for the “we want all of you” speech. “This is about talent as much as about product”. I’ve been here and seen this movie. Pay close attention to what is done… not what is said! Read the tea leaves. Usually takes 6-18 months for this to all play out depending on how aggressive the acquiring company is.
There will be overlap between these two companies. There will be warehouses that service the same areas, sale managers, reps, IT staff, accounting staff etc… and thus there will be consolidation. It’s simply a matter of efficiency. Over lapping jobs will be... not needed.
So, if you’re at the company being bought the best insurance is to get your resume out there. So you have a rock to hop on in the event it gets nasty… Create options for yourself so you don’t get caught off guard. I've been there... I've lived this stuff.
My 3 cents. Wish I knew this when I was a pup.
Does it work? Not very often. Most of the time it's people justifying their jobs and moving parts around the board but not moving the ball further down the field. I've been here...seen it first hand. I have the scars. Most acquisitons fail... like 80%. It's that bad..... It is an art. Not a science. And if an account or worse an attorney that drives the bus... pray... just pray IMO..
To some degree it is not personal. But to some degree it is. If you bought a company and there were three accounts and you needed one... and you paid your hard earned money for that company...what would you do?
Well, honestly, you'd toss two and keep one... It's a machine.
Now, what the employee needs to understand it they are a hired gun. The company employees you as long as you bring value from their perspective. But don't think this way as an employee - you offer a service to the company. Sell yourself to the folks that treat you well. Don't pay attention to "lip service". Pay attention to what actually is done.
If some one wants to put me in touch with JT... please do.
Best thing to remember as an employee what you have done up till this point in your career means nothing. You are on an extended job interview. They may have already decided to get rid of your position but if you are valuable, they will move you where they need you.
Pit Row
My favorite thing in business; buy a company and change all the things they were doing to make you want to buy it because you know better.
I could be wrong on all of this I just think it’s interesting.
If inventory is out on credit, receivables are considered the same way. But buying receivables is treated with great caution by any buyer.
Often the buyer purchases the "assets" of the business, the old corporation is dissolved, and a new one is formed. This limits any hidden liabilities, responsibilities, etc. for the buyer. Example would be, if a product liability suit arose from a helmet sold prior to the business sale, the old owner is responsible, and the new one is not. Employees would know this because they have to be rehired by the new company. But this does not happen always.
Also, more than a few companies in our industry that get acquired, do it because of growth. Some well known ones, too.
This one is very interesting, for sure. That said, we all should admire what C.S. accomplished.
BP
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