@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
Vinny:
If MTH were actually "worth a fortune," I think it is likely that some company or ownership group would have bought it or may still buy it. The question, however, is how potential buyers would value MTH. Having been involved in a number of M&A deals over the years, there are many components to that analysis. If the goal were to continue to run MTH as a going concern, and assuming the due diligence process went smoothly around the review of the assets/liabilities and profits/loss statements, and tax returns, etc., anticipated short and long term profit margins would be the key issue that would make or break the deal. Nobody is going to buy a business that they project is going to be losing money or operating on extremely thin profit margins.
Pat