RE:RE:RE:RE:RE:RE:RE:RE:RE:$325 million in long term debtThe difference is that that when you sell a controlling stake to PE, the founders usually continue to run the business, as a whole business, and their economic interests are better aligned with PE investors (how do we collectively maximize the value of THIS business).
When you sell to a "conglomerate", you run the business in a portfolio, in respect of the constraints required within that portfolio (how do we collectively maximize the value of the WHOLE ENTITY, which is not the same as maximizing the value of individual businesses). The upside is not based on your efforts since could be torpedoed by performance in other places. The sellers may do everything right and still lose money.
It's a very different model / mindset.
monty613 wrote:
they took ~50% of the purchase price in WELL shares. that is very different financially than selling 100% of your business for cash, or cash + VTB, and then riding off into the sunset.
if they raised capital in the form of selling a controlling stake to a PE player, and then continued to run the business, how is that much different than what is happening here?