Breaking News from WatchPro July 31

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H0rati0
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Re: Breaking News from WatchPro July 31

Post by H0rati0 » Mon Aug 05, 2019 12:22 am

nbg wrote:
Sun Aug 04, 2019 10:23 pm

Perhaps BGF will have a larger shareholding than any of the existing shareholders. VC or PE outfits tend not to sit back and just be passive shareholders, if they have taken a significant shareholding.....

Neil
It would seem that the allocation of shares to BGF is 550 out of a new total 2000 shares and thus only BGF now control greater than 25% of voting rights. We'll have to wait for the next confirmation statement to confirm the exact break down (what happened to the A & E shares held by Chris Ward?) but I guess from previous filings the holdings are now:

BGF 550 A shares
Chris Ward 50 E shares (?)
Mike France 450 B shares
Peter Ellis 450 C shares
Jorg Bader 500 D shares

The founders plus Jorg Bader (from SH) now all hold less than 25% each, though collectively they do retain control. They relinquished a big chunk for the incoming dosh, but that money goes into the company not to the individuals.
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Re: Breaking News from WatchPro July 31

Post by nbg » Mon Aug 05, 2019 7:34 am

Bahnstormer_vRS wrote:
Mon Aug 05, 2019 12:10 am
nbg wrote: Perhaps BGF will have a larger shareholding than any of the existing shareholders. VC or PE outfits tend not to sit back and just be passive shareholders, if they have taken a significant shareholding.....

Neil
That's true for VC and PE outfits but, my understanding of the BGF modus operandi, is that whilst they invest in Companies that VC and PE outfits might also invest in, they are not looking for the same level of return, or an Exit Plan, but genuinely want to grow the business.

This may sound somewhat altruistic but it's what I understand.

Guy

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I realised they operated differently, hence my comment earlier in the thread:

“Overall good news for CW, as I think that BGF take a different approach to many PE or VC funds.”

My comment wasn’t supporting the view about an exit. It was an observation that BGF were now the largest shareholder and that in such circumstances they wouldn’t be sticking their money in and just letting CW get on with running it without BGF having significant influence.

Neil
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Re: Breaking News from WatchPro July 31

Post by H0rati0 » Mon Aug 05, 2019 9:04 am

nbg wrote:
Mon Aug 05, 2019 7:34 am

My comment wasn’t supporting the view about an exit. It was an observation that BGF were now the largest shareholder and that in such circumstances they wouldn’t be sticking their money in and just letting CW get on with running it without BGF having significant influence.

Neil
Agreed. My reading is that BGF will be an active investor via their board seat (their 25%+ holding allows them to control special resolutions which typically control company structure) while the rest of the management remain in place to execute on growth. I wish them well, it ain't easy out there.
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Re: Breaking News from WatchPro July 31

Post by Thegreyman » Mon Aug 05, 2019 9:47 pm

jtc wrote:
Sun Aug 04, 2019 9:11 pm
richtel wrote:
Sun Aug 04, 2019 9:07 pm
jtc wrote:
Fri Aug 02, 2019 7:38 pm
Sounds like the beginning of an exit by CW and others to me.
What makes you say that Jon?
Growth has delivered a healthy return on investment. Successful entrepreneurs are always looking for the next opportunity. CW is an established brand now, with some efficient vertigal integration, but the higher priced items aren't their bread and butter, and likely won't ever be. There also seems to be a struggle with volume. Good time to cash out and let others feed and water a solid money maker.
I would expect that there is plenty of work for the 3 founders to do before making an exit. The company has been lossmaking in recent years and I'm sure the new investor, as well as the 3 gentlemen, will want to grow the business (as well as the profits) with this new investment. I don't mean that in a negative way as a successful business with a great product should be making a decent return for the owners/investors.
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Re: Breaking News from WatchPro July 31

Post by iain » Tue Aug 06, 2019 8:48 am

Thegreyman wrote:
Mon Aug 05, 2019 9:47 pm
jtc wrote:
Sun Aug 04, 2019 9:11 pm
richtel wrote:
Sun Aug 04, 2019 9:07 pm


What makes you say that Jon?
Growth has delivered a healthy return on investment. Successful entrepreneurs are always looking for the next opportunity. CW is an established brand now, with some efficient vertigal integration, but the higher priced items aren't their bread and butter, and likely won't ever be. There also seems to be a struggle with volume. Good time to cash out and let others feed and water a solid money maker.
I would expect that there is plenty of work for the 3 founders to do before making an exit. The company has been lossmaking in recent years and I'm sure the new investor, as well as the 3 gentlemen, will want to grow the business (as well as the profits) with this new investment. I don't mean that in a negative way as a successful business with a great product should be making a decent return for the owners/investors.
One of the first questions asked at the Edinburgh GTG was about the founders exit strategy, following rumours at that time of them seeking external investment. The reason I remember is because I posted the question on the forum and it was asked on the day by Guy.

Here is the video on YouTube and the question is one of the first two asked which starts at about 1min 30sec and is answered over the following 5mins.

https://youtu.be/FBHVqY5ZwR0

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