Marine Max Acquires Crusiers Yachts

FootballFan said:
Are new boat sales booming in the 45 - 70ft range?

My suspicion are new boats sold out very quickly, replacement inventory wasn't there.

The hot part of the market is the center console, under 40' market. Those are replenished in the supply chain on a shorter interval.

Demand spilled over to fuel an exorbitant level of activity in the used boat market.
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I just heard that some dealers are requiring pay 10% to 20% nonrefundable deposit on $1 million plus yachts that will not be delivered until summer of 2023.
 
This one will be interesting to follow -
My assumption is that no one in Marine Max knows how to run manufacturing facilities and that Cruiser wasn't in the best financial shape (or they wouldn't have sold for just over their revenue amount. The key will be getting the right talent to lead the development and manufacturing operations, probably all new staff.
 
All's Well said:
This one will be interesting to follow -
My assumption is that no one in Marine Max knows how to run manufacturing facilities and that Cruiser wasn't in the best financial shape (or they wouldn't have sold for just over their revenue amount. The key will be getting the right talent to lead the development and manufacturing operations, probably all new staff.
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If they do your last sentence, they are fools.
 
unless they bought at a discount I think their timing is terrible as I think we are coming off the top and the country is looking down the barrel at inflation.
 
RBB said:
unless they bought at a discount I think their timing is terrible as I think we are coming off the top and the country is looking down the barrel at inflation.
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Could it be that it is easier to buy manufacturers now, when their inventory levels are depleted, they have orders in the pipeline, and money is cheap to borrow, than it would be during lean times when boat sales are tough?
 
MonacoMike said:
Could it be that it is easier to buy manufacturers now, when their inventory levels are depleted, they have orders in the pipeline, and money is cheap to borrow, than it would be during lean times when boat sales are tough?
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I always find this to be a bit of a puzzling paradox. Is this business in good enough shape to be seen as profitable by the buyer, who is likely paying some premium over the cost of the existing owners to keep running the business? Or is the business facing enough uncertainty that owners want to unload it?

It always kind of reminds me of Ben Stein's complaint about management taking a business private. If they have an idea on how to make the firm more profitable, don't they have a fiduciary responsibility to the shareholders make the firm more profitable? Besides maybe "stop paying out to the shareholders"?
 
PlayDate said:
I wonder how Brunswick execs feel about outsourcing their Sales to Marine Max now..........
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This intrepid deal gives a Marine Max the tools to compete with Brunswick. That would give them the Cruisers yachts for the bigger boats and nice bow riders to compete with SR and now they have a center console line to go after Boston whaler with.
 
mobocracy said:
I always find this to be a bit of a puzzling paradox. Is this business in good enough shape to be seen as profitable by the buyer, who is likely paying some premium over the cost of the existing owners to keep running the business? Or is the business facing enough uncertainty that owners want to unload it?

It always kind of reminds me of Ben Stein's complaint about management taking a business private. If they have an idea on how to make the firm more profitable, don't they have a fiduciary responsibility to the shareholders make the firm more profitable? Besides maybe "stop paying out to the shareholders"?
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Not looking to opine on this particular transaction, but recognize that there is a significant cost in meeting regulatory reporting requirements. This along with the ability of a private company to focus on medium and longer term growth rather than managing short term quarterly results which is what the stock market rewards
 
MonacoMike said:
This intrepid deal gives a Marine Max the tools to compete with Brunswick. That would give them the Cruisers yachts for the bigger boats and nice bow riders to compete with SR and now they have a center console line to go after Boston whaler with.
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How long before MM owns the Brunswick brands or puts them out of business?

Not a prediction but a conversation topic?
 
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