M&A Deal?

Quoted: Cerberus Capital is not in habit of buying compnaies in bad financial troubles. They are one foremost Private Equity firms on the street. They have done deals with Goldman Sachs, JPMorgan and some of the other large investment banking and private equity firms out there. Most of their deals have been buying undervalued companies, bringing them up and selling them for a premium. I doubt they would've even looked at Bushmaster if the balance sheet wasn't up to par. My question is who handled the M&A deal?

Buying companies in bad financial troubles is EXACTLY what Cerberus does.  They are a vulture fund, they buy companies with big problems, with the goal of fixing those problems.  Their targets are undervalued precisely because there are problems associated with them.  Typical methods of dealing with these problems includes firing people and cutting other costs.

Who handled the deal (meaning who was the advisor) isn't that important.  All the banks and M&A advisory firms are all the same.  What would be interesting would be know what Cerberus' exit strategy is.  IPO?  Sale to another private buyer, like another private equity fund?  Acquisition by a larger defense contractor?  If I had to guess, it's likely this last option.  I can't imagine a robust market appetite for a BM IPO.  

Looking at the exit strategy makes it even more likely that BM will focus away from the civilian market and into LEO/Mil sales.  There's definitely money to be made there with the current administration in place.

JMHO....

Quoted: I think Bushmaster makes a great product, now that being said I think you can fund others that are as good or almost as good for less. Bushmaster has has some price hikes in the past ( not that long ago ) Their prices could price them selves out of the market for most shooters. My AR is 90% bushy parts, and I love it(my rifle). Like HK, there will always be a market no matter how high prices get. Invisiblesoul

I agree, however as-is, Bushmaster provides an outstanding product for less than its competitors.

I priced out barrel assemblies and CMMG was about $100 more than Bushmaster. The only major difference was the 1/7 twist in the CMMG an the 1/9 twist in the Bushmaster. I could have gotten the 1/7 Bushmaster for an extra $20 or so.

I'll have to find another source for 4150 steel AR-15 barrels in the future if Ceberus or whomever screws up Bushmaster.

                                                                                                                                                                                          I wonder how bad BM got in trouble with its 308's, if they got in financial problem because of them.

EASYHOTEL
Istithmar Hotels, a subsidiary of Istithmar – an international investment house based in the UAE, has signed a $400 million contract with easyHotel to open a chain of budget hotels across Middle East, North Africa, India and Pakistan.

It recently announced its plans to open eight new easyHotel budget hotels across major metropolitan cities in India over the next four years.

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individuals personal politics have no bearing on their business skills.

The middle east needs a string of low budget hotels and believes that investing $400 million will ensure easyHotel succeeds where it has so far failed in the UK and Switzerland.
Istithmar, which means investment in Arabic, applies global expertise with local insights to coordinate the appraisal and implementation of various opportunities. Mr Ioannou is due a bit of good luck and Istithmar is willing to gamble and support him despite his recent difficulty.

Istithmar’s ‘I’ investment philosophy is based around three core principles -- Ideas, Inquiry & Integrity -- sets the foundation for the firm which has a broad portfolio of highly successful companies in markets from North America to Europe to Asia to the Middle East. Istithmar does not believe it's integrity wil be damaged due to its association with the controversial Mr Ioannou nor by easyHotel's seedy reputation in the UK. Istithmar considers its investment of $400 million in easyHotel to be secure and expects a return.

Please email [email protected] if you have any similar investment proposals for us to consider.

ISTITHMAR
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Floor 4
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P.O. Box: 17000
Dubai
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Telephone: +971 4 3902100
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Email: [email protected]