waltthizzney wrote:More reason to buy/invest in Q36.5 gear
dont understand the logic...... because Rapha has raised money to invest, you should no longer buy products from them?
Moderator: robbosmans
fa63 wrote:Apparently, RZC also owns a piece of Allied Cycle Works, the Arkansas based frame maker who bought Guru's tooling/machines when they went out of business.
Maybe soon we can buy a custom carbon frame and Rapha clothing at Walmart? [emoji3]
Digger90 wrote:The multiple RZC is paying for Rapha certainly is mind-boggling...
But then so is Dorel paying a 1x multiple for Cannondale if those figures are true: a $200m price for a company with $200m revenues values the company as basically a professional services/non-product company, with no value in its products, technologies, R&D, brand, patents or anything.
Then again, we are talking about Cannondale.... the company that contributed Press-Fit BB's to the world.
On 2nd thoughts... 1x was too much!
Digger90 wrote:The multiple RZC is paying for Rapha certainly is mind-boggling...
But then so is Dorel paying a 1x multiple for Cannondale if those figures are true: a $200m price for a company with $200m revenues values the company as basically a professional services/non-product company, with no value in its products, technologies, R&D, brand, patents or anything.
Then again, we are talking about Cannondale.... the company that contributed Press-Fit BB's to the world.
On 2nd thoughts... 1x was too much!
GonaSovereign wrote:That's a sh*tload of money for Rapha. They're a good marketing company, but do they have any IP? (I'm a fan and like the Proteam line, and as a marketer appreciate the solid brand building they've done. They are a marketing company, after all. Assos is a product company. Castelli is both.)
53x12 wrote:The figures are true. Cannondale had $200 million in sales in 2007 and were purchased for $200 million by Dorel in 2008.
http://www.bikingbis.com/2008/02/04/mak ... e-company/
silvalis wrote:Is 260m that mind boggling? They reported 63m gbp revenue last fy. Not sure what their profit was though.
maquisard wrote:53x12 wrote:The figures are true. Cannondale had $200 million in sales in 2007 and were purchased for $200 million by Dorel in 2008.
http://www.bikingbis.com/2008/02/04/mak ... e-company/
Cannondale wasn't in great shape financially at the time of the sale which I suspect might have had something to do with that price.
Anyone know what Cervelo was sold to Derby for? It was apparently it pretty dire financial straits when it was sold and basically insolvent and in the Canadian equiv. of Chapt. 11.
Wookski wrote:Digger90 wrote:The multiple RZC is paying for Rapha certainly is mind-boggling...
But then so is Dorel paying a 1x multiple for Cannondale if those figures are true: a $200m price for a company with $200m revenues values the company as basically a professional services/non-product company, with no value in its products, technologies, R&D, brand, patents or anything.
Then again, we are talking about Cannondale.... the company that contributed Press-Fit BB's to the world.
On 2nd thoughts... 1x was too much!
This is great, so revenue multiples have replaced earnings multiples and NPAT is now EBITDA? Keep this thread going please!
From what I heard there were several PE firms offering valuations in the £200m range, there's a range of qualitative and quantitative factors that lead to a valuation and very hard to ascertain from a couple of headline numbers. Profit is less relevant in the context of a private company in its growth phase- for Waffa it's going to be about drawing more members into their system (clubhouses/ events/ experiences/ product lines etc). I wouldn't be surprised if they sponsor another pro team as well.