The Sale of Mac Baren Proved Costly
- Thread starter eyjaygaming
- Start date
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Smart profitable well run companies try not to overpay for acquisitions, unless they consider it a lost litre…. Big tech is famous for this, Amazon has bought and destroyed many competitors where it lost money short term for market share later. Apple takes a loss on Apple Music to compete with Spotify, because they make lots off IPhones, computers, other subscriptions ect.
So they either paid what it was worth, smelt blood and the family is correct and underpaid, or over paid to destroy it.
So they either paid what it was worth, smelt blood and the family is correct and underpaid, or over paid to destroy it.
When STG approached me to consult on the purchase…oh, wait…no, they didn’t.
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getting anew auditor/book keeper is a result of what is most likely a "oops, we dont want the book keeper to have credibility if we get investigated by the government for tax evasion".
Yeah, every company wants to keep themselves looking good, but the thing is, the book keepers are part of it. Get rid of them, and you have the option of making the fired ones looked revengful if they turn witness on you.
Everyone knows what Walmart is. Few people understand that Walmart ends the fiscal year the last day of January.
January is the WORST month of sales for walmart. December is over, and no one can afford more then basics becaue they are paying off december since october started christmas laway.
The lowest month included with the 2 highest profit months only helps them with taxes. But at same time, since the MARKET goes to a slightly different date system, they maximize the earnings on the stock system.
Yeah, every company wants to keep themselves looking good, but the thing is, the book keepers are part of it. Get rid of them, and you have the option of making the fired ones looked revengful if they turn witness on you.
Everyone knows what Walmart is. Few people understand that Walmart ends the fiscal year the last day of January.
January is the WORST month of sales for walmart. December is over, and no one can afford more then basics becaue they are paying off december since october started christmas laway.
The lowest month included with the 2 highest profit months only helps them with taxes. But at same time, since the MARKET goes to a slightly different date system, they maximize the earnings on the stock system.
Not sure it would have gone any worse though…..It wouldn’t go very well for them
This thread just seems like a lot of hullabaloo for a "Something is rotten in the state of Denmark" meme.
I love smelts, especially smoked smelts. Smelts smoked with Mac Baren Old Dark Fired.
That brings to mind a variation on an old, old nursery rhyme:
Smelts smoked hot
Smelts smoked cold
Smelts smoked with Old Dark Fired, nine days old
Dry them 'til they're crunchy
Press them in a flake
Tease them into ready-rubbed, so to the match they'll take
Piscine at the charring-light
Piscine at the heal
Fishy odor overwhelms, and makes your neighbors squeal
Smelts smoked hot
Smelts smoked cold
Smelts smoked with Old Dark Fired, never will be sold!
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Not too long ago I look up the profit for Mac baren for 2024 and it was over 80 million. Even with the previous pending tobacco legislation it still would have been way more profitable for the Halberg family to just continue the business even if slowly dwindled and then eventually died out. Absolute bonehead move by these people. Why not reach out to Per Jensen and the head of Sutliff to take over operations?
No. 2024 Net sales were $104 MM US. EBITDA was $12 MM US. STG, all in, only does $1.3 Billion in annual sales world wide even after acquiring Sutliff/MacBaren. While we lament this here in this small forum, we really are a dying breed and there are only a handful of companies that still care about us as a potential revenue stream. Most are identifying the future buyer and type of product that they will want and that's generally not Pipe tobacco.
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Plus, are there any Halbergs left that are as enamored of pipe tobacco like the old man was? I get the sense that after the pater familias passed... that was it. I mean, to go and deep six the old business at such an apparent loss - had to be more than just an accounting decision.
Lol, thats one of the big issues. The surviving family had spent to much investing into "health food" type companies. Having ownership of pricy "health excercise and health food outlets" was not going to work for a group that owned a tobacco maker.