OnlyMe Posted August 7, 2006 Share Posted August 7, 2006 !!!!!!!!! http://www.kamcity.com/namnews/asp/newsart...sp?newsid=28506 UK: MFI May Be Sold For £1 The newspaper report claims that Merchant, a consortium backed by Goldman Sachs, had now beaten private equity firms Apax Partners and Argyll Partners in the auction. Apparently the offer involves MFI paying Merchant £130m to take the business off its hands and in return the equity firm will make a nominal £1 payment. However, an MFI spokesman said reports of a signed-and-sealed deal were premature. Quote Link to comment Share on other sites More sharing options...
OLDFTB Posted August 7, 2006 Share Posted August 7, 2006 Mfi May Be Sold For £1 F*cking way overpriced if you ask me! Quote Link to comment Share on other sites More sharing options...
devslim Posted August 7, 2006 Share Posted August 7, 2006 Do they include an allen key? Quote Link to comment Share on other sites More sharing options...
Guest Bart of Darkness Posted August 7, 2006 Share Posted August 7, 2006 I'm hoping they'll knock an extra 20% off in the next sale. 80p seems about right. Quote Link to comment Share on other sites More sharing options...
Rachman Posted August 7, 2006 Share Posted August 7, 2006 Not a bad deal for management - they will get a lot of sweet equity, without putting much in the pot. From the information memorandum I have seen on it, it's a business that has some fat in it, profitability is not unfeasible and it could be turned round by ruthless new owners (which is what PE people do). pricewise, it's probably about right, I would have been cheeky and asked for underwriting of some of the debt or to pay some of it off at closing, but given it's a competitive auction, that's unlikely...... I think there's a lot of equity that can be released in the business as well...... [ahem, securitisation, sale and leaseback, surrender of duff leases.....] Quote Link to comment Share on other sites More sharing options...
cheeseandbeans Posted August 7, 2006 Share Posted August 7, 2006 Not a bad deal for management - they will get a lot of sweet equity, without putting much in the pot. From the information memorandum I have seen on it, it's a business that has some fat in it, profitability is not unfeasible and it could be turned round by ruthless new owners (which is what PE people do). I think there's a lot of equity that can be released in the business as well...... [ahem, securitisation, sale and leaseback, surrender of duff leases.....] Dump the MFI name and rebrand and there is margin in this deal. Quote Link to comment Share on other sites More sharing options...
jonewer Posted August 7, 2006 Share Posted August 7, 2006 At least two of the screws will be the wrong size anyway. Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted August 7, 2006 Share Posted August 7, 2006 At least two of the screws will be the wrong size anyway. or missing. Quote Link to comment Share on other sites More sharing options...
CrashCrash Posted August 7, 2006 Share Posted August 7, 2006 Buy MFI and get SDF free Quote Link to comment Share on other sites More sharing options...
Sledgehead Posted August 7, 2006 Share Posted August 7, 2006 Not a bad deal for management - they will get a lot of sweet equity, without putting much in the pot. From the information memorandum I have seen on it, it's a business that has some fat in it, profitability is not unfeasible and it could be turned round by ruthless new owners (which is what PE people do). pricewise, it's probably about right, I would have been cheeky and asked for underwriting of some of the debt or to pay some of it off at closing, but given it's a competitive auction, that's unlikely...... I think there's a lot of equity that can be released in the business as well...... [ahem, securitisation, sale and leaseback, surrender of duff leases.....] Right, so the biz is easily turn-aroundable, only the management could never manage it, even in the midst of a DIY boom, and yet you think this deal is gonna be sweet for the management. Can you not see that there are logic probs there? If I were buying this company the last thing I'd want are those bunch of losers hanging around, "MBO" or not .... golden handshake at a push, but "sweet equity"??? Hmmm............... Quote Link to comment Share on other sites More sharing options...
grey shark Posted August 7, 2006 Share Posted August 7, 2006 M anufactured F or I diots Quote Link to comment Share on other sites More sharing options...
sithclone7 Posted August 7, 2006 Share Posted August 7, 2006 More Furniture Ideas An example of how crap management can kill a company. Quote Link to comment Share on other sites More sharing options...
Perfectionist Posted August 8, 2006 Share Posted August 8, 2006 It's not MFI's fault ..... it's Ikea's ..... Quote Link to comment Share on other sites More sharing options...
Rachman Posted August 8, 2006 Share Posted August 8, 2006 (edited) Right, so the biz is easily turn-aroundable, only the management could never manage it, even in the midst of a DIY boom, and yet you think this deal is gonna be sweet for the management. Can you not see that there are logic probs there? If I were buying this company the last thing I'd want are those bunch of losers hanging around, "MBO" or not .... golden handshake at a push, but "sweet equity"??? Hmmm............... I take it you don't spend 12 hours a day talking to private equity shops..... - management put zip in, they have taken an underperforming business that they were forced to run a different way as it was part of a group and are able to refinance and restructure - they put in nothing or minimal amount and they take up to 5-10% on an exit (though I guess this is likely to be a secondary buyout). It's much much harder to turn a business otthe good with all new management.... put it this way, MFI is losing money big style - management will be out of a job anyway, go serve new masters - PE fund and have a chance of making it big enough to retire in 5 years strikes me as a relatively low risk strategy unless they have to remortgage big to pay to play... If you think back, BHS was awful as was Arcadia - did not do Philip Green any harm to take them on. [plus I have read the information memorandum....] Edited August 8, 2006 by Rachman Quote Link to comment Share on other sites More sharing options...
Bingley Bloke Posted August 8, 2006 Share Posted August 8, 2006 No doubt when the handover has taken place the new owner will find that part of the company is missing and parts of another company are in the box. Quote Link to comment Share on other sites More sharing options...
Son of Taeper Posted August 8, 2006 Share Posted August 8, 2006 What? You mean our national security is to be sold off? What will happen to all our spiess? Quote Link to comment Share on other sites More sharing options...
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