Collectors Universe bought privately by investors group. What affect do you think this will have?

atom · December 1, 2020 1:06PM

https://www.newzstack.com/newsletters/collectors-universe-a-700-million-company

Do you think PCGS will benefit from this acquisition?

pruebas · December 1, 2020 6:31PM

The good: the large dividend could be better put to use expanding the business and improving turn-around times for increased revenue.

The bad: private equity has a historically bad track record of loading up companies with debt, extracting most of the cash, not investing in the core business nor the employees, and spinning off the corporate carcass to slowly die.

bronco2078 · December 1, 2020 6:48PM

@pruebas said:
The good: the large dividend could be better put to use expanding the business and improving turn-around times for increased revenue.

The bad: private equity has a historically bad track record of loading up companies with debt, extracting most of the cash, not investing in the core business nor the employees, and spinning off the corporate carcass to slowly die.

private equity kills everything it touches

FilamCoins · December 1, 2020 7:28PM

I smell a bubble in the collectibles market. Hope this works out for investors, staff and customers alike.

291fifth · December 1, 2020 7:39PM

No.

mkman123 · December 2, 2020 9:41AM

Will Brett still be president or will they replace him?

brg5658 · December 2, 2020 9:53AM

I'm not keen on the move personally, but I will refrain from posting my complete thoughts because I like participating in this forum and I don't want to be banned.

pruebas · December 2, 2020 11:51AM

Whoever said that if you are rich enough you cannot choose your own grades?

Onedollarnohollar · December 2, 2020 5:36PM

this is a wait and see

500Bay · December 3, 2020 9:22AM

Sorry for what may be a basic question - what does this mean for a current stock holder? Will they receive a cash buyout of their shares?

pruebas · December 3, 2020 5:56PM

@500Bay said:
Sorry for what may be a basic question - what does this mean for a current stock holder? Will they receive a cash buyout of their shares?

It means once the tender offer is active, your broker will ask you whether or not you wish to tender your shares to the acquiring entity for the agreed price. If you say "no," then several months down the road (assuming 50%+1 of the shares were tendered by others) the corporation will automatically cash in your shares for the exact same price that you would have gotten had you tendered them (perhaps minus any dividends paid out).

davewesen · December 4, 2020 10:31AM

increase in fees?

Swampboy · December 5, 2020 9:15AM

I noticed in Brett's email yesterday that Collector Club membership went from 12,000 in 2018 to 20,000 in 2020.

bronco2078 · December 6, 2020 2:09PM

Is mittens involved?

Collectors Universe bought privately by investors group. What affect do you think this will have?

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