Gold Supporter
- Messages
- 3,007
- Reactions
- 7,003
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Between 2005 and 2009, Sciens Capital and The Blackstone Group loaded Colt with massive debt while taking distributions and paying themselves high management and advisory fees. Colt was in weak shape in 2005 and 2006 but each year Sciens and its affiliates took out at least $40 million from the corporation. In 2007, they did a leveraged recapitalization. The company borrowed $150 million and the private equity firms paid themselves over $130 million in dividends. In 2009, Colt borrowed another $250 million and this cycle repeated itself.
Someone will step in to buy their IP (blueprints, etc.), maybe their tooling and the rights to their name and branding, but buying the company itself? Probably not.
In my experience (I've been through this with several corps I used to work for - common for high tech startups), the buyer will probably get quite a deal, or the owners will hold off for years and then sell for even less.
I love my Anaconda and Gold Cup.