Sunday, Aug 24, 2008
Bring it on!
Times: NM Rothschild called in to save estate agent Foxtons
"THE private-equity owner of estate agent Foxtons has appointed the investment bank NM Rothschild to review the business just one year after buying the company. Best known for its branded Minis and aggressive sales tactics, Foxtons was bought by the private-equity group BC Partners for £390m in May 2007 at the height of the buyout boom".
Posted by alan @ 08:25 PM (863 views) Add Comment
11 Comments
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1. wiltshire said...
"(Jon) Hunt indicated he has no intention of buying back the business."
REALLY? It's not bloody surprising is it? He's probably too busy laughing his hand-made silk socks off on some Caribbean island.
2. Yerhavingalaugh said...
Not only are the banks exposed to dodgy mortgage deals but they are also in it up to their necks in loans to finance this dodgy buyout that will probably collapse spectacularly. As these are American and Japanese it seems it is not just the great British public that thought that UK property was a one-way bet.
3. Uncle Tom said...
Talk about 'sold a pup' !!
4. Fatjock said...
You've got to admire Hunt, talk about perfect timing. Enjoy spending the numpties money mate!
5. it_is_going_with_a_bang said...
Hunt buy back the business? LoL.
Who on earth would even consider asking him?!
6. Renting2 said...
I hope my timing is as good Hunt's when I eventually buy a house.
7. Whostolemyendowment said...
A pox on poxtons.....big shame that Hunt got away with it....
Old BBC news article from March 2006 - but still worth a re-visit:
http://news.bbc.co.uk/1/hi/magazine/4826444.stm
8. Adamsmithll said...
I wish Jon Hunt well. He is a shrewd man who will not spend anything on buying back the sack of s••t that is Foxtons. If a bunch of idiots from a badly run investment bank offered me £360 million I would not hesitate in accepting. It is now only a matter of time before Foxtons collapse under the weight of debt.
9. Stewjohnst said...
Good job they didn't buy an overpriced business on the back of an asset bubble. oh, wait...
10. str 2007 said...
It amazes me how supposedly intelligent people would pour 390 million into an estate agency and what most knew was peak boom.
Should have got some advise from us.
Further if you really wanted a London Agency I'm sure you could set up a very good one for less than half that amount.
And don't be surprised if Jon Hunt does buy his business back. But it will be in about 4-5 years time for about £50 million tops. Just in time to start picking up the 1st green shoots of recovery.
That's what happened in the last recession when banks and building societies bought up independents in the late 80's. They were all bought back again buy the original entrepreneurs.
11. uncle tom said...
str 2007,
History is repeating itself - just before the 90's slump, the banks all thought that buying up estate agents was a great wheeze - they paid way over the odds, lost millions, and most of the agents ended up buying back their businesses a few years later, for a fraction of what they were paid. What they would have lost due to the market slump, most recovered (and more..) due to the banks' stupidity.
When nerdy people spend their lives getting qualified as an accountant, getting into a big corporate career structure, and then dutifully working 9-5 at a desk without ever getting out into the real world (other than to crowd into Tesco on a Saturday morning..) they often end up believing that they are far more world-wise and intelligent than they really are.
Big financial institutions love to exude the image that they have a collective intelligence that will always better the humble punter - in fact, they can be incredibly stupid and herd-like, leaving loads of opportunities for lazy lateral thinking opportunists (like me) to cash in - especially when the market is turbulent - i.e. now..