Changes at Serotta (Good news?)

[DRZRM]

Not sure where e-richie got the news but he posted the following at V-Salon.

Serotta, the Brand That Drove Innovation into the Bicycling Industry, Announces Future Plans


Ben Serotta ramps up research, design and production through new partnership.


SARATOGA SPRINGS, NY (May 8, 2012) - Serotta, one of the world's premier handcrafted performance bicycle manufacturers, has announced a new partnership that will fast-track the company's research, design and production. The company has entered into a partnership agreement with Bradway Capital. "Bradway brings us the depth of resources and management expertise that we need to expand our business and bring innovation to the next level," stated Ben Serotta. "I am excited about the prospects of allowing an experienced management team to run the day-to-day operations while I turn my full focus to building the world's best bicycles right here in Saratoga Springs, NY."


Bradway Capital was founded by Brian Case, who currently serves as its managing partner. Case, an avid rider, former shop owner and partner of Fit to Ride, an advanced bicycle fit studio, has been fitting and selling Serotta bicycles since the late '80s. "There are many cycling enthusiasts at Bradway Capital," said Case, "and we are thrilled to be part of the Serotta experience, assisting in bringing the next generation of Serotta bikes to market. We are not just partners - we have ridden Serottas for years."


"This is great news," stated Chris Jacobson, owner of Sport Garage in Boulder, CO, a Bicycling Magazine Top 100 Shop. "As an active seller of Serotta since 1994, I've witnessed the stunning technological and bike/body advancements created and implemented by Ben and his organization. Serotta constructs each and every frame in the United States by the hands of artisans, so that the bike can disappear beneath its rider to reveal the true beauty of cycling."

ATMOs post from V-Salon

Glad to hear of some positive change for Ben.

Thoughts?

[FlashUNC]

Sounds like the company was more or less sold.

[William]

OMG!!!

Mr. Squirrel was right!!! What is this world coming too????
http://forums.thepaceline.net/showth...hlight=serotta




William

[nighthawk]

Seems like positive momentum to me.

[dave thompson]

Deja vu, all over again?

[William]

WOW!! Mr. Squirrel trumped "e" by over a month. Is it just me or is it getting really cold outside?






William

[eddief]

look what the finest handmade builders charge for lugged steel perfection. Look at the finest custom titanium. Look at what the big names do with off the shelf carbon. Serotta gotta find the niche again.

As the biggest healthcare corporation says here "may you live long and thrive."

[MattTuck]

Tough niche for serotta to try to fill. Wants to do the research/development of a big brand, but doesn't have the economies of scale and efficiency on the production side to pay for it.

I wish them luck.

The solo guys and very small shops have their niche, the big guys have their niche, I'm just not sure there's a market where Serotta wants to play.

[weiwentg]

Sounds more like a minority stake or joint venture than a sale.

The firm I work in sold a minority stake to a private equity company. This particular company is pretty hands off and actually brought (so I hear) a lot of management expertise to the board, plus I'm pretty sure that management reinvested the $$ from that stake into the business. If you find the right partner, these arrangements can work well.

Sure, you could find someone who'll strip the business or fire as many workers as they can. But I'm going to guess that while Ben's move was motivated, it was not a sale of a distressed company. Of course I don't know the details, so this is an educated guess.

[SamIAm]

Originally Posted by weiwentg

Sounds more like a minority stake or joint venture than a sale.

The firm I work in sold a minority stake to a private equity company. This particular company is pretty hands off and actually brought (so I hear) a lot of management expertise to the board, plus I'm pretty sure that management reinvested the $$ from that stake into the business. If you find the right partner, these arrangements can work well.

Sure, you could find someone who'll strip the business or fire as many workers as they can. But I'm going to guess that while Ben's move was motivated, it was not a sale of a distressed company. Of course I don't know the details, so this is an educated guess.

I would find it almost impossible to believe that someone would take a minority interest in Serotta at this point. I would be looking for complete control if I was providing even modest capital to this particular business.

[weiwentg]

Originally Posted by SamIAm

I would find it almost impossible to believe that someone would take a minority interest in Serotta at this point. I would be looking for complete control if I was providing even modest capital to this particular business.

(shrugs)

[eddief]

and go head to head against Specialized. If nothing else, Volagi has a distinguished design, made in the east for cheap, and appears to compete well with the best selling Roubaix. You know a Serotta model called the Serotta Volagi. Maybe too innovative.

[Richard]

This quote has implications that reach farther than just a minority stake in exchange for capitalization:
"I am excited about the prospects of allowing an experienced management team to run the day-to-day operations while I turn my full focus to building the world's best bicycles right here in Saratoga Springs, NY."

I doubt a savvy investor would hope for good returns on this business unless they have their own plan with close to full control on how it is implemented.

[jr59]

Originally Posted by William

OMG!!!

Mr. Squirrel was right!!! What is this world coming too????
http://forums.thepaceline.net/showth...hlight=serotta




William

mr. squirrel is nuts, but was sure correct on this one.

Hey mr. squirrel, whats the gold market going to do and why?

[eddief]

http://bradwayfinancial.com/about-us/brian-case/