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Reply to "Mike Wolf to retire and close MTH"

@Vinny26 posted:

Don’t you think that Mike has planned this for a long time?   I’m sure he tried to find a buyer.   There is none out there.   MTH is worth a fortune.  Who right now would invest all those resources in a hobby that is already over saturated with trains.    This is not the same era as 1986 when Lionel was looking for a buyer and Mr Kughn came along   Keep in mind Kughn  already loved the company and was collector   In this uncertain climate investments are very unstable 

 

 

 

Something is only worth what someone is willing to pay for it. When you say MTH is worth a fortune, it could be that if you look at the tooling and the factory they own and the intellectual property and the current sales it is worth on the books X millions/hundreds of millions, but in the end it comes down to what someone is willing to pay for it. Sometimes companies buy the assets of another company to introduce it into their product line, sometimes they buy the assets of another company for other reasons, perhaps for patents the company owns, perhaps simply for the name (for example, Japanese companies bought the names of famous clock/watch companies like Elgin, Ingraham and the like, and turned out cheap watches/clocks with those names on them.  If no one wants to buy a company, in the end that means it isn't worth a fortune, it means it has no value in terms of being an ongoing business, at least not in the eyes of those who could buy it.  Obviously after so many pages of discussion about this we come back to one fundamental point, at this point the only thing we know is that a)Mike plans to walk away next year b)DCS will be supported in some fashion and c)as of this writing, there is no white knight out there to buy the business. 

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