Lance bought out by REV GROUP
Hmm. Could be good I suppose. Looks like business as usual. Sad that another smaller MFG is now bought out. http://www.rvbusiness.com/2018/01/rev-enters-towable-sector-with-lance-acquisition/
Forum Discussion
"Sad that another smaller MFG is now bought out. "
Maybe for you, but maybe not for the owners. They have spent decades building their company, and maybe, now they can enjoy the fruits of their labors.
Why do so many people think a small company can produce a better product at a lower price than a large company? Economies of scale definitely are a plus. Combining office expenses, insurance, etc. Purchasing power. There are so many reasons that this merger can be beneficial.
Almost every large company started as a small family operation. Do you think Apple would be making as many iPhones, etc., if they didn't get funding from venture capital firms?
Yes, sometimes a big company buys a smaller company, and quality is sacrificed for quantity. But, since the founders are staying on, there is a very good chance they have written many safeguards into the purchase agreement. And, maybe the buyers realize that RVs are a commodity, and only quality will allow them to sell higher-priced RVs.
Mom and Pop can't always finance growth that is called for, if they want to supply all the demand a quality product may generate. Lance is expanding their manufacturing operations, I believe, and maybe the added capital will allow them to make even better units.
I just don't understand why some people think growth is automatically bad!
Maybe for you, but maybe not for the owners. They have spent decades building their company, and maybe, now they can enjoy the fruits of their labors.
Why do so many people think a small company can produce a better product at a lower price than a large company? Economies of scale definitely are a plus. Combining office expenses, insurance, etc. Purchasing power. There are so many reasons that this merger can be beneficial.
Almost every large company started as a small family operation. Do you think Apple would be making as many iPhones, etc., if they didn't get funding from venture capital firms?
Yes, sometimes a big company buys a smaller company, and quality is sacrificed for quantity. But, since the founders are staying on, there is a very good chance they have written many safeguards into the purchase agreement. And, maybe the buyers realize that RVs are a commodity, and only quality will allow them to sell higher-priced RVs.
Mom and Pop can't always finance growth that is called for, if they want to supply all the demand a quality product may generate. Lance is expanding their manufacturing operations, I believe, and maybe the added capital will allow them to make even better units.
I just don't understand why some people think growth is automatically bad!
