Suhr Is Being Bought Out!!!

Well I hope the suhr modern fireburst neck thru goes down to the 1200 range!!!!!!!!!!!!!!!!

plenty of that kind of guitar in that price range anyway... but hard to find an equal to a Suhr in any price range. Pretty much only happens when you hit one man shops doing $5k guitars
 
Does seem a bit low but that's not unusual in this industry as profit margins are typically very low.

Take a look at that holding company's profile. Little public and what is is totally bizarre and unrelated to music instrument production. Weird deal from the outside looking in.
 
Back when I used to work for a living my company, a manufacturer of industrial electronics, bought a number of companies in this price range. We typically paid about one year's revenue for profitable companies, somewhat less for companies that were struggling, and always paid off their debt out of this amount, so the cash or stock going to the principals was always less. After twenty years we sold my company to a giant industrial corporation for a cash amount equal to our next year's projected sales less outstanding debt.

Having a year's revenue in hand is a lot different from living off the annual profits.

Danny W.
 
This is John's response on TGP:

Hey guys,

I understand everyone's concern but there is really nothing to be concerned about.

We have spent a lot of time with AVLP. They love what we do and want to help us continue on our current path of growth making great products for our customers. The last thing they want is for anything to change.

This is all good for everyone involved. On the announcement day we celebrated with our employees.

I will stress that there is no change to quality, process or personnel. You all know that there is nothing more important to me than to maintain the Suhr quality, brand and reputation that we have worked so hard to build.

Obviously there are details I am not able to get in to at this point, nor am I able to address every question. From the outside looking in everything stays the same. So remember, nothing changes and I'm still here!
 
I find the $11 million price tag surprising. Just yesterday I read a story in our local small town paper about a company (Garden Fresh Gourmet) that started here the same year as Suhr (1997) making Salsa and Chips which just sold to Campbell soup for $231 million. I guess there's way more money in Salsa then there is in guitars.
 
11 million is pre-tax in pocket. Probably take 11 years or over 110 million in sales to equal those earnings. Possibly more. Sounds like he's planning his future.
 
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