Strategy in TECH...
The Custom Electronic Design & Installation Association (CEDIA), held their annual member’s webinar where association staff and board representatives review the “State of the Association” for those members tuning in to the webcast. The polished, prepared presentation offered an upbeat assessment on the organization’s accomplishments in 2018. But, as you might suspect, I uncovered a couple of interesting issues in which I’m seeking some follow-up clarification.
No doubt about it, Apple Inc. supplier Foxconn has had a really bad week. First, last Tuesday Wisconsin voters kicked Republican Governor Scott Walker out of office, replacing him with Democrat Tony Evers. Then early this week, the company released financial results with disappointing earnings that missed analysts estimates. Both of these unrelated events have combined to cause market analysts to question the company’s strategy going forward.
SnapAV, a leading provider of custom integration brands and products, announced today that it has acquired Volutone, a respected California-based distributor with seven locations throughout California and Nevada. The move expands SnapAV’s local touch points in a key market, a strategy that first emerged with their earlier acquisition of another large regional distributor in March of this year, Chicago’s Allnet Distributing.
When we last left Tivoli, the company created many years ago by Tom DeVesto who is now the CEO of Como Audio, it was 2015 and they had just been sold by one private equity company, with the help of another private equity company, to a third private equity company. Now word comes that the third private equity company, Serruya Private Equity of Toronto, which Strata-gee wrote about in June 2015, has sold Tivoli in a buyout to the company’s management in conjunction with a financial backer.
Back in June, Strata-gee reported that Monster Products, Inc. (the former Monster Cable) had filed an S-1 registration document with the Securities and Exchange Commission, laying out its plans to launch a new cryptocurrency known as Monster Money. In addition to this, the company would offer shares in the company as well. The filing got a lot of attention at the time, in part because if successful, it would be the largest cryptocurrency launch ever to that point.
Now, I’ve learned that this initiative has been officially rescinded by the company.
Emerald Expositions’ stock nose-dived 19% in early afternoon trading last Thursday as the company released its third quarter fiscal results and announced that David Loechner has resigned as the company’s President and CEO. Current CFO Philip Evans takes over as Interim President and CEO.
Gibson Brands is on the verge of emerging from bankruptcy a much healthier business in many respects – with less debt, more money in the bank, and a new leader to help the company shed its consumer electronics debacle and reconnect with the musical instrument market. The fifth time, it appears, was a charm as the court has approved the fifth revision of a company submitted turnaround plan that, cuts debt, jettisons former CEO Henry Juszkiewicz, and puts bondholders KKR in the driver’s seat.
Although owned by an agribusiness tycoon who is rumored to be extremely wealthy, Thiel Audio Products Company last Tuesday declared bankruptcy. The company filed papers with the U.S. Bankruptcy Court saying it had assets of around $900,000 and liabilities of over $1,800,000. The filing was a bitter end to a sad series of developments over the last six years, with new owner David B. Griffin changing management teams at least five times in one five-year period. The result was a constant, if slow, slide down the slippery slope of ruin.
Melrose PLC, owner of Nortek, including Nortek Security & Control, is openly talking to U.K. media about the likelihood of selling off Nortek – saying, in essence, their work is done, the turnaround is complete. This being the case, their thinking is that it is time to harvest their crop by selling off the company to reap their reward of profits.
Kingswood Capital Management, LLC, a private equity company that describes itself as “an operationally-focused lower-middle market” PE company – and the current owner of AVAD – announced today that it has purchased Houston, TX-based custom integration distributor WAVE Electronics, Inc. and plans to merge it with AVAD to create one total entity. Their announcement says that with this move they “will create the single largest value-added distributor of high-end audio, video, security, and home automation solutions in the consumer electronics industry.”
Many thought they already were the largest distributor.
