The beginning of the end for Whyte ?

[Zimmerframe]

Whyte Bikes bought by private equity firm as it targets European market | BikeRadar


https://www.bikeradar.com/news/whyte-bikes-bought-by-irish-private-equity-firm-causeway-capital

 

[Alfmeister]

That’s worrying, after what happened with YT. Let’s hope they don’t just asset strip, or over spend!

 

[irie]

Causeway Capital Partners

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If CC wants a cash cow then Whyte will be shafted, but if CC is interested in asset growth then could be good for Whyte.

 

[RustyMTB]

Well I wonder what history tells us.

Classic PE model is to buy a successful business, get your money back straight away by humping it with a shitload of debt & watch it waste away when it has to service that debt & can no longer afford to invest in itself to react to competitive & market pressures. Of course I'm sure this time it will be different...

 

[mooby77]

Causeway Capital Partners

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If CC wants a cash cow then Whyte will be shafted, but if CC is interested in asset growth then could be good for Whyte.

I think private equity and bike brands don't really mix , their CC portfolio does not suggest they have ever invested in such previously , may be a good thing , understand for now the management team @ Whyte are staying as it , they were already owned by Private Equity , so not much change there , bankers and bikes , what is it all about , dentists and bikes , is nothing sacred

 

[RustyMTB]

Also never understood why they don't call the ebikes Whyte power & market them to the boomer ukippys.

 

[mooby77]

Also never understood why they don't call the ebikes Whyte power & market them to the boomer ukippys.

could be construed as Racist I guess Whyte Power

, thats flavour flav btw for all you youngsters / oldies

 

[DylanJM]

Weren't they already owned by a PE company? So this is PE to PE sale rather than founder to PE sale.

 

[mooby77]

Weren't they already owned by a PE company? So this is PE to PE sale rather than founder to PE sale.

yes per previous post, so maybe a better fit PE partner , who knows , we shall see I guess

 

[Doomanic]

The Joke ------->

<-------mooby's head

 

[MOG]

Seems to be a worrying trend. Just come from reading on a farming forum where the report is of another machinery manufacturer that was recently bought by a PE company and is now filing for bankruptcy. Seems to be their modus operandi

 

[mooby77]

The Joke ------->

<-------mooby's head

Never be afraid to laugh at yourself, after all, you could be missing out on the joke of the century.

 

[Scott_123]

When companies are sold to private equity firms it usually means the company is deep in debt. I don’t know the sate of this companies finances but given the overall state of the bike market this purchase this doesn’t look good. If a company is sold to private equity firm which is profitable usually the goal is to shed areas of the company not making money so overall profit margins improve. If the company purchased is in deep debt, the firm usually sells off the assets to make some money and dissolves the company.

 

[Ndanger]

The question becomes... possible spec changes / model simplification. Are they keeping the “specialist” engineering heritage (unique geometry, high-performance components) or moving toward “good enough for mass market”

 

[Mikerb]

I cannot see that Whyte would be attractive to a PE just in order to asset strip. Asset strip what? Whyte's primary value lies in its engineering design and bike ethos rather than property/patents/ stock/ IPR etc.

 

[irie]

I cannot see that Whyte would be attractive to a PE just in order to asset strip. Asset strip what? Whyte's primary value lies in its engineering design and bike ethos rather than property/patents/ stock/ IPR etc.

For example, cash can be accumulated by extending supplier payment terms.

 

[Scott_123]

I did a little research and it looks like this purchase may actually be a net positive for the company.

 

[mooby77]

Whytes range is pretty minimal anyway from a EMTB perspective , The Kado range - 3 models , The E-Lyte

I did a little research and it looks like this purchase may actually be a net positive for the company.

only time will tell , as a Whyte owner and customer I hope so

 

[steve_sordy]

For example, cash can be accumulated by extending supplier payment terms.

In my opinion, that is another word for theft. Basically, they reach into the bank accounts of their suppliers and take a month's money (assuming that they are extending terms by one month).
One of my friends works for a large multi-national company. Their payment terms are one year!!!! If they go broke, they take with them one year's turnover. Like I said, theft.
It should be illegal.

 

[irie]

In my opinion, that is another word for theft. Basically, they reach into the bank accounts of their suppliers and take a month's money (assuming that they are extending terms by one month).
One of my friends works for a large multi-national company. Their payment terms are one year!!!! If they go broke, they take with them one year's turnover. Like I said, theft.
It should be illegal.

Trouble is that everyone from the govt down does this. For example, recently I was over taxed by HMRC - took months to get the overtaxed cash refunded. And the fuckers didn't pay me interest on MY cash they'd had for 3 months.

 

[mooby77]

Trouble is that everyone from the govt down does this. For example, recently I was over taxed by HMRC - took months to get the overtaxed cash refunded. And the fuckers didn't pay me interest on MY cash they'd had for 3 months.

same here , fecking HMRC, when the shoe is on the other foot they want it pronto , and then penalties / interest if you don't ..

 

[Lee Dove]

Whyte Bikes bought by private equity firm as it targets European market | BikeRadar


https://www.bikeradar.com/news/whyte-bikes-bought-by-irish-private-equity-firm-causeway-capital

They just changed ownership from one PE firm to another.

 

[r2wtrials]

Also never understood why they don't call the ebikes Whyte power & market them to the boomer ukippys.

White power suspension already ran that gauntlet … now just known as WP

 

[RustyMTB]

Which would be a brilliant idea. Yes?

You knock yourself out, Nige.

 

[E-MAD MALC]

So what we saying.
Yet another bike brand not to buy from because they done some wheeler dealing to put them in better stead
Imagine if the name was Specialised, would you be saying the same thing
I say they will be OK, I have no problem buying from them if only I could afford it