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The Bad News Report


tozmervo

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21 minutes ago, Desert Power said:

Isn't there some other thread to house this weapons-grade bullcrap?

At the very least, this needs to move to the Coffee House. Or moderators need to issue warnings to cease and desist. The poster is clearly not dumb nor is everything he is saying totally wrong (just overwhelmingly so). Nonetheless, no one is coming to UP to see this. Take it to Reddit where it will be appreciated...

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1 hour ago, rancenc said:

Not to drag this off topic but I thought everyone with Cardinal was uptown in the Nascar building? Is this a field office?

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2 hours ago, a2theb said:

Not to drag this off topic but I thought everyone with Cardinal was uptown in the Nascar building? Is this a field office?

 

4 hours ago, rancenc said:

These layoffs are stemming from the failure of providing adequate and quality behavioral services for Mecklenburg, Cabarrus, Union, Cabarrus, Lincoln, and Iredell counties. It's consequently to the company not doing nor giving the NC core counties of Metro Charlotte as needed. 

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5 hours ago, a2theb said:

Not to drag this off topic but I thought everyone with Cardinal was uptown in the Nascar building? Is this a field office?

I interviewed there several years ago and I'm not sure but I have the impression that they have  more people in their other offices I went to which iirc were in the University area. 

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  • 1 month later...

The SPX acquisition by a private equity firm seems likely to be bad news for the Queen City. Lone Star (the buyer) said no cuts are planned and Charlotte will remain the HQ. SPX is a good bit healthier than Belk was but…

https://www.bizjournals.com/charlotte/news/2021/12/13/spx-flow-proposes-3-8b-sale-to-private-equity-firm.html

Edited by kermit
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54 minutes ago, kermit said:

The SPX acquisition by a private equity firm seems likely to be bad news for the Queen City. Lone Star (the buyer) said no cuts are planned and Charlotte will remain the HQ. SPX is a good bit healthier than Belk was but…

https://www.bizjournals.com/charlotte/news/2021/12/13/spx-flow-proposes-3-8b-sale-to-private-equity-firm.html

Article also says the management team will stay in place, and the proposal price is a 40% premium to where the stock had been trading, which means the Queen City likely has a brand new cadre of even wealthier local area executives.  This could just be a going private move to make a stable company invest in its future without the short-termism of being publicly traded.  Do you know something about the PE Firm's plans, however?  I know PE firms often get a bad rap.

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47 minutes ago, RANYC said:

 Do you know something about the PE Firm's plans, however?  I know PE firms often get a bad rap.

I do not have any specific information here. I am just being my normal pessimistic self -- hopefully that is misplaced.

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I'd guess too early to tell.  Lone Star likely will look to make several acquisitions, then spin them back off as a larger public company based in Charlotte.  However, if they determine they can't successfully implement that strategy, they will either make cost cuts and spin them off, or look to sell to a larger conglomerate, which would be bad.  My base case guess though is this is likely a long term good deal for Charlotte, but again, just a guess.

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22 minutes ago, tozmervo said:

I'd love to see a list of businesses that were successfully grown and thrived under a private equity company. 

https://www.firmex.com/resources/uncategorized/leveraged-buyout-success-stories/

Article above mentions Safeway (1988), Dell (2013), RJR Nabisco (1988), Hiton Hotels (2009), Houdaille Industries (1978).

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How to kill a company, Houdaille division:

https://www.washingtonpost.com/archive/opinions/1989/04/23/how-to-kill-a-company/6c4ecddb-a0a6-47c7-a810-4c552f6e2205/

 

I mention this because for many years there was a building at 1914 W Morehead named Carolina Houdaille. Strange name for what was an auto pats business and I asked about it at that time. Thus when it was mentioned above I knew something about the background.

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A local company I used to work for, SnapAV arguably was a success under PE.

First took private equity from General Atlantic with revenues at or just under $100M.  Used the investment to grow and sell to another PE, Hellman and Friedman.  This investment and PE backing allowed Snap to then acquire a competitor/complimentary offering in Control4.  Now the combined company is known as SnapOne and publicly traded on NASDAQ

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10 hours ago, tozmervo said:

I'd love to see a list of businesses that were successfully grown and thrived under a private equity company. 

It would be an incomprehensibly long list.  There are hundreds of private equity sponsors that buy small, grow modestly and sell to a larger sponsor, which then does the same thing.  DealCloud (founded locally as a spinout of a local private equity management company (not a fund, but the firm's management team)) --> Intapp (a public company).  The vast majority of PE-sponsored companies grow while PE-sponsored.  

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