Bavaria in administration?

BlowingOldBoots said:
Would you have the figures from Bavaria for comparison?
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I'd be interested to see their accounts too.

How often have we seen something which has been bought by private equity investors using high levels of leverage which becomes insolvent, not because there is anything fundamentally wrong with the fundamental business model, but because the business has been dragged down by the millstone of debt which has been hung around it's neck by virtue of the way it's acquisition has been financed.
 
Graham376 said:
What about the warranties on recent sales? Are warranties underwritten or, do they rely on present Bavaria company still trading?
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In common with some other marques, you don't usually buy a Bavaria from the builder, you are a customer of the dealer. The dealer's profit includes a clip which he has to use to fund any warranty fixes. So I'd be more worried about the Dealer going down than Bavaria.
 
Frogmogman said:
How often have we seen something which has been bought by private equity investors using high levels of leverage which becomes insolvent, not because there is anything fundamentally wrong with the fundamental business model, but because the business has been dragged down by the millstone of debt which has been hung around it's neck by virtue of the way it's acquisition has been financed.
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That has already happened to Bavaria. Bain Capital dropped a cool billion when they sold.
 
Yet more and more companies are bought by the wolves of wallstreet (so to speak). At least Oyster now has been taken over by an individual, who actually has his heart set on this adventure. But it is highly unlikely this can happen for Bavaria, as it is a much larger company.
 
Re: Bavaria in administration

Saw this on another site yesterday - not good news. Interesting that the article suggests full order books so hopefully they will find a way through
 
SO40 said:
Yet more and more companies are bought by the wolves of wallstreet (so to speak). At least Oyster now has been taken over by an individual, who actually has his heart set on this adventure. But it is highly unlikely this can happen for Bavaria, as it is a much larger company.
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I don’t think it’s a bad thing at all if a failing business like this is bought by an equity company.

I’m sure following your heart is all very well but a large set up like this is going to need some hard decisions to get it back into profitability and secure people’s jobs.

I met a guy a year or two ago who did this for one of the large equity companies. To say he is meticulous is an understatement but they have to get it right for everyone’s benefit.

____________________________
 
Re: Bavaria in administration

Another victim of scum venture capitalists who care not for workers or suppliers.
Over leveraging business means their money is returned quickly at the expense of company longevity.

I'm a capitalist at heart but what has been going on in the past 10 years should be illegal
 
Re: Bavaria in administration

They are German and the expression "administration" is being used as an analogy to the uk legal process called administration.

Bavaria is in turnaround LBO ownership. To guess anything about its future you have to know whether (a) the business is cash generative but not enough to deal with the LBO financing, or (b) the business burns cash. If (a) it will definitely survive and undergo a financial restructure eg Ferretti. If (b) it will either get cash support from shareholder (Princess) or it won't and will go through bankruptcy processes (fairline).
The write up gives us few clues as to the real facts! But I suspect and hope it's an (a).
They're making really nice boats now. I looked at the business in great depth back in 2007 or whenever the Bain LBO happened.
 
Re: Bavaria in administration

Whitelighter said:
Another victim of scum venture capitalists who care not for workers or suppliers.
Over leveraging business means their money is returned quickly at the expense of company longevity.

I'm a capitalist at heart but what has been going on in the past 10 years should be illegal
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Thats a bit of a daily mail comment Jez. As said above, you need to separate the financing of a business from the business. If a venture capitalist/private equity owner over leverages, invariably the business continues and the VC/PE fund loses its shirt. E.g. Ferretti and Bavaria the first time, which never went bankrupt at the operating level. Which owner of Princess, other than its patient PE fund owner, would have kept the company afloat topping up its cash waiting for a turnaround? The estate of Graham Beck? Really?
And where else is everyone's pension fund going to invest to make 15% returns in today's world of zero interest rates, if not venture and private equity? Be careful what you wish for.
(For sake of transparency, I declare an interest- I work in private equity)
 
Re: Bavaria in administration

Ok I guess it was.

But there seem to be many failures where the PE co get there stake and a healthy return back while the company goes under and staff get nowt (not even their pensions).

I realise in here we are mostly the 'haves' and by any standards I too am well paid and yes, point taken about pensions, but I am still a wage slave. 15%pa - that expectation tells a story when inflation is f*** all. 5% is my target for my pension, but I'm not in the position to profit from others misfortune
 
Re: Bavaria in administration

jfm said:
And where else is everyone's pension fund going to invest to make 15% returns in today's world of zero interest rates, if not venture and private equity? Be careful what you wish for.
(For sake of transparency, I declare an interest- I work in private equity)
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+1 - but then we did just sell our business to Living Bridge ;)

I expect that, (if the order book anecdotes are correct), there’s a new chapter for Bavaria about to open up - esp given the success of the Multihull arm.
 
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