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Aviva To Sell Rac For £1Bn To Private Equity Group

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Glad I'm not an RAC member anymore.

I am. Let me guess: Next time I have a breakdown, instead of a useful-man-with-van turning up, I'll be directed (via an 0845 number) to a english-as-second-language call center, where I will get a 10 minute hard sell for 'advanced membership' and new car loans, before getting through to someone who goes through an on-screen checklist (have you tried putting the key in and turning the ignition? Can you try it now?), followed by 'Our mechanic is just setting out from Sofia and will be with you shortly in 26 hours'..

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Aviva bought RAC in 2005 I think. I'm guessing they've done the same as Centrica, CVC Permira, and now Saga are /have done with the AA - asset striping, shedding staff and slightly increasing yoy profits, finally selling the subsequent husk of a business for even more than they paid. In ten years the AA went from a one hundred year old successful institution with a huge commercial property portfolio, own fleet of vehicles and staff training facilities, to a logo and a bunch of rented vans.

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Aviva bought RAC in 2005 I think. I'm guessing they've done the same as Centrica, CVC Permira, and now Saga are /have done with the AA - asset striping, shedding staff and slightly increasing yoy profits, finally selling the subsequent husk of a business for even more than they paid. In ten years the AA went from a one hundred year old successful institution with a huge commercial property portfolio, own fleet of vehicles and staff training facilities, to a logo and a bunch of rented vans.

+1 My RAC membership won't be getting renewed then. But I guess virtually all the breakdown organisations are just debt/tax playthings for City spivs now.

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We need to make list of the great UK businesses left, that own their buildings, have plenty of cash, and not already offshored or hollowed out....

Anyone?

And then start a fund to buy it and asset strip it...

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We need to make list of the great UK businesses left, that own their buildings, have plenty of cash, and not already offshored or hollowed out....

Anyone?

And then start a fund to buy it and asset strip it...

I was thinking of creating a list... of firms not to buy from. Hopefully they will go bust along with their pirate equity overlords, or people can refuse jobs with them (though that could be too much to ask, given the current climate).

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I have previously owned several unreliable cars, so have good experience of breakdown recovery operators.

On the only occasion I have used the AA (through someone elses card), they took two hours to arrive and sent a man in a little van. This despite the fact that I told them the head had blown catastrophically and to send a proper truck.

Most of the cheaper providers (Britannia rescue, green flag etc) use local breakdown companies. I have used them probably 5 or 6 times and they have always been excellent. They have always sent a proper lorry in good time (normally <30 mins) and been very helpful.

I don't understand why anyone would pay twice as much for the AA or RAC.

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I don't understand why anyone would pay twice as much for the AA or RAC.

They have the best television advertisements, therefore "they must" be the best.

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I have previously owned several unreliable cars, so have good experience of breakdown recovery operators.

On the only occasion I have used the AA (through someone elses card), they took two hours to arrive and sent a man in a little van. This despite the fact that I told them the head had blown catastrophically and to send a proper truck.

Most of the cheaper providers (Britannia rescue, green flag etc) use local breakdown companies. I have used them probably 5 or 6 times and they have always been excellent. They have always sent a proper lorry in good time (normally <30 mins) and been very helpful.

I don't understand why anyone would pay twice as much for the AA or RAC.

Green Flag left me stranded on the hard shoulder of the M1 for over an hour, despite having been told I was high priority as a lone female with a young baby in the car.

The police stopped to check on me because I'd been spotted on the CCTV with no sign of help arriving, and got the control room to give Green Flag a right rollocking. Driver wasn't best pleased about the roasting the rozzers gave him when he finally arrived. :lol:

I'm now with Tesco Finest, which is actually RAC, for less than medicore cover with Green Flag.

Edited by mitchbux

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Aviva bought RAC in 2005 I think. I'm guessing they've done the same as Centrica, CVC Permira, and now Saga are /have done with the AA - asset striping, shedding staff and slightly increasing yoy profits, finally selling the subsequent husk of a business for even more than they paid. In ten years the AA went from a one hundred year old successful institution with a huge commercial property portfolio, own fleet of vehicles and staff training facilities, to a logo and a bunch of rented vans.

The wanton looting and destruction of these people makes the mongol hordes pale into insignificance. I wonder if the country will ever wake up to what has really been done?

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I don't understand why anyone would pay twice as much for the AA or RAC.

They have the best television advertisements, therefore "they must" be the best.

That's the power of advertisements.

My mate says that Coca Cola once decided to spend less on ads as they didn't need a high profile as they where the market leader, Coke sales declined Pepsi's increased. Coke then went on a huge ad campaign binge.

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The wanton looting and destruction of these people makes the mongol hordes pale into insignificance. I wonder if the country will ever wake up to what has really been done?

Apparently, Tim Parker (CVC permira) who headed up the AA "restructuring" walked away with a £40million bonus for his trouble, after flipping it to Acromas Holdings (Saga).

AA chief executive Tim Parker, a former Trotskyite and Labour member who now advises the Tory party, was reported to be in line to collect £80million, although the firm said later it would be "nearer £40million".

http://www.thisislondon.co.uk/news/article-23401853-the-men-who-made-140m-by-merging-the-aa-and-saga.do

What a hero!

Most private equity purchases are financed by borrowing.

Interest charges are offset against tax, which means the firms pay little or nothing to the Treasury, which has ordered a review.

Edited by dom

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That's the power of advertisements.

My mate says that Coca Cola once decided to spend less on ads as they didn't need a high profile as they where the market leader, Coke sales declined Pepsi's increased. Coke then went on a huge ad campaign binge.

Painkillers work faster because people believe they are paying more for a better product.

You just have to believe the 19p paracetamol does the trick and it will.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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