Boyd Wheels

[sokyroadie]

Anyone going to pony up.

https://boydcycling.com/blogs/news/w...f-boyd-cycling

[AngryScientist]

Raising capital to pursue aggressive growth goals in the bicycle business is not a great idea right now IMO.

I don't know anything about running a business, but if I operated a small to medium sized biz, I would be doing just the opposite right now. Head down, focus on managing expenses and keeping the core business healthy.

I suppose ENVE did basically what BOYD is attempting to do?

I wish them luck!

Poised for explosive growth via vertical integration, expansion into global markets, plus OEM opportunities.

[Philster]

I'm going to consider it. Not really for the return, but as an easy way to be involved in the industry. I just wish that they'd get the plant up and running so their made in USA wheels are available.

I see this offering as a responsible, low risk way to go about expansion. They're raising new equity, rather than stretching and boot strapping the existing business. I definitely wish them well.

[jpang922]

Target +3x Equity Multiple on investment in 3-5 years, meaning when we sell you could more than triple your initial investment!

This is a bit worrying too… a sale to whom?

[45K10]

I have never had any Boyd Wheels. Are they any good?
I have heard their MTB hubs are crap.

[echappist]

On the one hand, I applaud Boyd for doing this properly (that is to say, fully compensate its funders, whether via equity or via issuance of bonds). We have some small businesses around that basically beg for capital, but without promising returns of any kind. After a year or two, same business begs for more money. In contrast, Boyd is not indulging in cakeism, which should be applauded.

I'd also like to know if there are any bond holders in senior position. B/c were the scheiss to hit the fan, equity owners gets wiped out.

On the other hand, this projection (taken directly from the website for the equity sale) appears a bit optimistic, to say the least. If I'm reading this correctly, this is not projected revenue, but rather projected company value. They are expecting almost a near tripling in company value in just two years. How do they foresee doing this?

Originally Posted by jpang922

This is a bit worrying too… a sale to whom?

I don't think that in itself is worrying. There are various CFRP manufacturers around.

[StressStrain]

I don't see a planned future sale as the problem. That's how most entrepreneurs work.

I think the bigger problem is how to grow 4x in the next year and 11x in 3 years while the bike industry suffers a covid hangover.

[pdonk]

The fact that they provide a basic form of financials in the filing documents is a interesting to look at.

https://www.sec.gov/cgi-bin/browse-e...ion=getcompany

[prototoast]

Originally Posted by StressStrain

I don't see a planned future sale as the problem. That's how most entrepreneurs work.

I think the bigger problem is how to grow 4x in the next year and 11x in 3 years while the bike industry suffers a covid hangover.

If that's market cap, then I think the growth in the next year is just the mechanical change from the equity investments. The next step involves increasing production in a way that allows them to reach new markets that they couldn't currently due to scale.

I don't know how feasible that is, but I wish them well.

I don't like to make investments in individual companies because of potential conflicts with my job, but I might otherwise be tempted to kick in $5-10k.

[54ny77]

I wish them and any US based company as much success as possible. Good for them! Hopefully a big American bike company will pick them up to spec wheels.

[bigbill]

I am a Boyd fan. I two sets of factory wheels and one set of wheels with CCC rims. I've never had any issues with hubs and they're as true as the day they came out of the box. They'll probably get some of my money, especially with their on-shoring of CF rim production. I think they have the advantage of learning from ENVE and others.

[polyhistoric]

The online review of the Munich Composites rims and wheels (Schmolke) don't seem all that positive and I can't see how this will support the sales gains being predicted.

I'm all for investment and development and building factories with good QC, environmental compliance, and offering a livable wage.

I just don't see the investment value. Wish them all the best though.

[sevencyclist]

Very interesting. I am wondering whether it's a better investment into the company or into a set of Boyd wheels...

[weaponsgrade]

I recall clothing company Kitsbow tried something like this. A few months (weeks?) later they shut down. It's gotta be a tough trying to compete with Asian brands like BTLOS.

[Jaybee]

Not really the subject of the thread, but my CCC gravel wheels have been amazing. I tend to underbike quite a bit and have spent some decent time and money repairing and truing less reliable (but not cheaper!) wheels. The CCCs have stood up to what essentially amounts to rigid MTB riding for 4 years now in all types of weather and I haven't needed to touch them.