Synchro
Member
2014/06/15.
2014/06/15.
Synchro is secretly the Cordoba CEO. Was, really...he just blew his cover.Are you saying you have seen that as the date for the sale to occur? Have I missed something?
Sorry gentlemen. Now I'll have to confiscate all of your Guilds. In return, you'll get a 10% discount coupon good for any CMG product.Synchro is secretly the Cordoba CEO. Was, really...he just blew his cover.
The inside rep at FMIC said the sale was effective the 15th. That's all I've heard.Are you saying you have seen that as the date for the sale to occur? Have I missed something?
It's probably already signed to take effect on that date. Maybe having it take effect on a Sunday has the effect of freezing business so that they can isolate a trial balance of all inventory at the time of the sale. Just a theory.Mid-month sounds like a plausible closing date, but the 15th is a Sunday, which sounds a bit unusual to me.But then, I don't buy or sell businesses.
Yeah, usually the interval until signatures take effect is just to give all parties time to do their discovery and due diligence, kind of like when a house is in escrow.Sorry gentlemen. Now I'll have to confiscate all of your Guilds. In return, you'll get a 10% discount coupon good for any CMG product.
The inside rep at FMIC said the sale was effective the 15th. That's all I've heard.
It's probably already signed to take effect on that date. Maybe having it take effect on a Sunday has the effect of freezing business so that they can isolate a trial balance of all inventory at the time of the sale. Just a theory.
It ain't done til it's done, but it sounds like both parties have committed to this 100%. As LadyTexan mentions (below) they've moved a lot of material and equipment. I get the feeling that CMG is very serious about making this happen.Yeah, usually the interval until signatures take effect is just to give all parties time to do their discovery and due diligence, kind of like when a house is in escrow.
You might be right about that Sunday thing, it might very well be a convenient day of the week to get a 100% up-to-date "snapshot" of the books as of close of business Saturday, without worrying about having to factor in a regular business day's business, later.
So I'm sure all parties are dealing in good faith and it probably IS a "done deal" as someone (Ralf, I think) mentioned, but still..."it ain't over 'til it's over".
Someone had to pay for all of this moving, so I'd say that is a clear indication that this is going to happen.According to an anonymous source who would know, the tooling, machinery (including the heat laminator), wood inventory, and all remaining "A" stock (after the fire sale) went to CMG in California (not sure it is was Oxnard). Factory was 'officially' vacated on June 1st.
Al: You are not driving me crazy but it was not me. I was the one saying it is not a done deal until I see the official press release about the closure...and so far only a letter of intent was signed. (and I referred to legal language). Now that was a month ago...So I'm sure all parties are dealing in good faith and it probably IS a "done deal" as someone (Ralf, I think) mentioned, but still..."it ain't over 'til it's over".
Al: You are not driving me crazy but it was not me. I was the one saying it is not a done deal until I see the official press release about the closure...and so far only a letter of intent was signed. (and I referred to legal language). Now that was a month ago...
And yes, the article Sandy shared has some errors in it...Hope CMG does a bit more research about the company they acquired...
Ralf
At this point I'd be shocked if it doesn't close.
I'm sure that there's due diligence that must be observed at every step along the way. If the money changing hands is borrowed or in any way publicly traded there are all sorts of hoops to be jumped through in order to keep everyone happy and keep it all legal. Deals at this level aren't like buying a used snow tire off of Craigslist. Once the check clears the bank, don't be surprised if you see an IPO from FMIC. I'm pretty certain that they did this to get rid of debt in anticipation of an IPO.Right, I'm sure it would only be if some lawyer found something in the wording or the compensation structure that was unintentionally legally invalid or unenforcable, at the last minute.
But yeah when people are already moving heavy equipment around it sounds like everything's pretty well checked out from a legal point of view..
Al: You are not driving me crazy but it was not me. I was the one saying it is not a done deal until I see the official press release about the closure...and so far only a letter of intent was signed. (and I referred to legal language). Now that was a month ago...
And yes, the article Sandy shared has some errors in it...Hope CMG does a bit more research about the company they acquired...
Ralf
I'd be very surpised to see an IPO. They scrapped the last one due to a distinct lack of investor interest, only what, a year ago?Once the check clears the bank, don't be surprised if you see an IPO from FMIC. I'm pretty certain that they did this to get rid of debt in anticipation of an IPO.
I hope that they don't. Publicly traded instrument companies don't sound lime a good idea to me.I'd be very surpised to see an IPO. They scrapped the last one due to a distinct lack of investor interest, only what, a year ago?
Links in the original thread about the sale indicate Fender still is/was seen as "topped out" in terms of earnings potential, they're perceived as being in a relatively saturated and shrinking market and this particular shedding of debt will do relatively little to change that.
Adding yet further gloom to the forecast is that the real millstone around Fender's neck is Guitar Center as their biggest customer and debtor, and Guitar Center ain't all that healthy either...could drag Fender right down with 'em.
At least that's how I recall it.
On the other hand, maybe if they're "too big to let fail"....I hope that they don't. Publicly traded instrument companies don't sound lime a good idea to me.