fseva Posted June 16, 2015 Posted June 16, 2015 Well, we know that Modelhaus has announced that they will be retiring in 2017... What are the chances someone would buy the business and keep operating as usual?
Rob Hall Posted June 16, 2015 Posted June 16, 2015 No idea as to their future, but I've been a loyal customer for over 20 years..bought a lot of their parts for kit restos and a lot of their kits and conversions. Love their stuff...
mike 51 Posted June 16, 2015 Posted June 16, 2015 (edited) How DEEP are YOUR pockets??? Finding someone with their skills and ethics might be even harder to find than the $$. Their competition is already minimal and they aren't the only casters who are at or near retirement ages. It's not a hobby type business either.....a friend of mine has done many of Don's masters but he has zero interest in going into the casting business, just for an example. Edited June 16, 2015 by mike 51
Rob Hall Posted June 16, 2015 Posted June 16, 2015 Finding someone with their skills and ethics might be even harder to find than the $$. Their competition is already minimal and they aren't the only casters who are at or near retirement ages. It's not a hobby type business either.....a friend of mine has done many of Don's masters but he has zero interest in going into the casting business, just for an example. Yes, I would think it would be a full time job for a skilled caster or two given the size of their catalog and presumed volume of business..
charlie8575 Posted June 16, 2015 Posted June 16, 2015 One of the reasons I'm trying to stock-pile as much as possible. I have a lot of restoration projects that need little odds and ends and I plan on acquiring it all, plus another few kits. I'm hoping someone truly worthy (or a few people pooling talent and/or resources) steps up and keeps a critical business going, assuming their other two kids or some other succession plan is in place. Charlie Larkin
Ramfins59 Posted June 16, 2015 Posted June 16, 2015 I've "heard" that Don is questioning whether or not anyone who may "buy" the business will have the same commitment as they have to produce the quality products and level of service that they are and have been putting out, based on their extensive catalog as Rob said.
Greg Wann Posted June 16, 2015 Posted June 16, 2015 I heard it through the grape vine that a group of investors are looking at purchasing the business. A local guy that I cast for thinks I should put my hat in the ring. He thinks my casting is that good. But.....my pockets are not that deep. If I really had lots and lots of money....well maybe I would give it a try. I'm most certain that moving a business like that here to Arizona would be a huge undertaking too.
1930fordpickup Posted June 16, 2015 Posted June 16, 2015 (edited) It will be hard for anyone to do this work without training. They may need to spend a year to become familiar with all the tooling and shows they attend. As far as a value that would be one tough cookie to figure out. To many variables. There is a large group that does casting in Detroit that can handle the extra work, they would just need to go full time. Edited June 16, 2015 by 1930fordpickup
fseva Posted June 16, 2015 Author Posted June 16, 2015 (edited) One of the reasons I'm trying to stock-pile as much as possible. I have a lot of restoration projects that need little odds and ends and I plan on acquiring it all, plus another few kits. Charlie, if many more hobbyists do that, you may have to wait until 2017 to get the orders filled! And then, it might be too late for all of us! I wonder what their backlog is, since announcing their retirement??? Edited June 16, 2015 by fseva
Young iron Posted June 16, 2015 Posted June 16, 2015 Yet, with their name, catalog and developpement-possibilities (new masters from others), this remains good business...
Krazy Rick Posted June 16, 2015 Posted June 16, 2015 (edited) I think that if someone is chosen, they will most certainly be up to the task; with all the pride, integrity & dedication to the hobby that Don has put into Modelhaus; it won't be just handed over for a few bucks. Edited June 16, 2015 by Krazy Rick
mike 51 Posted June 16, 2015 Posted June 16, 2015 From thier website..... We make to order. Due to increased orders in response to our announced retirement in May 2017, please allow 4-12 weeks for delivery.
fseva Posted June 17, 2015 Author Posted June 17, 2015 (edited) I think that if someone is chosen, they will most certainly be up to the task; with all the pride, integrity & dedication to the hobby that Don has put into Modelhaus; it won't be just handed over for a few bucks. Except that Modelhaus has no real inventory - they make to order - which means that the only things being sold are the business-name and the instructions on how to make their parts and kits. That should not cost very much (comparatively). In fact, that could even be a reason why the business might not be put up for sale in the first place... Edited June 17, 2015 by fseva
SCI-FI Posted June 17, 2015 Posted June 17, 2015 Except that Modelhaus has no real inventory - they make to order - which means that the only things being sold are the business-name and the instructions on how to make their parts and kits. That should not cost very much (comparatively). In fact, that could even be a reason why the business might not be put up for sale in the first place... ...? Wouldn't the molds count as assets for sale? Mold-making and casting tools? Masters, in case replacement molds need to be made? Seems like those would all be worth a bit of coin...
mike 51 Posted June 17, 2015 Posted June 17, 2015 (edited) Except that Modelhaus has no real inventory - they make to order - which means that the only things being sold are the business-name and the instructions on how to make their parts and kits. That should not cost very much (comparatively). In fact, that could even be a reason why the business might not be put up for sale in the first place... They have all kinds of masters from tiny parts to bodies....those are far more likely to be sold than the name or "instructions" (?). What are those masters worth? They'd only be worth "alot" in the form of a turn key business, and I doubt that will be the case. Who said the business was for sale anyway? I assumed the 2 year advisory they gave was to inform us that they were ending the venture. Your comments seem odd fseva since you've apparently never seen let alone purchased any of their products..... Edited June 17, 2015 by mike 51
keyser Posted June 17, 2015 Posted June 17, 2015 Some people have zero clue how much work, integrity, and kindness come from Don and Carol. You cannot pay for the kind of reputation they've busted tail doing for the last 20-25 years. Their recent tragic loss of their son just makes it seem so unfair. Don and Carol are awesome people, smart, hardworking in several different professional lives. Fseva, buy a few kits of theirs, and you may learn the difference between cost and value. I personally doubt you ever will, but don't denegrate the business of the Holthaus family or it's value unless you've done similarly. This business will be hard to replace, or sustain at the level of commitment of Don and Carol. No matter what, I wish them peace and happiness. The success was all their doing.
mike 51 Posted June 17, 2015 Posted June 17, 2015 Some people have zero clue how much work, integrity, and kindness come from Don and Carol. You cannot pay for the kind of reputation they've busted tail doing for the last 20-25 years. Their recent tragic loss of their son just makes it seem so unfair. Don and Carol are awesome people, smart, hardworking in several different professional lives. Fseva, buy a few kits of theirs, and you may learn the difference between cost and value. I personally doubt you ever will, but don't denegrate the business of the Holthaus family or it's value unless you've done similarly. This business will be hard to replace, or sustain at the level of commitment of Don and Carol. No matter what, I wish them peace and happiness. The success was all their doing. Very well said...
fractalign Posted June 17, 2015 Posted June 17, 2015 Anyone looking to purchase the business would need to ask them selves what they are actually getting. They would need to find out if all the moulds need to be replaced, whether the masters would be included in the sale and even if the business is actually for sale. From the waiting time for the orders, it sounds like the business it too big an operation for one person to manage. It would make sense to get a group of like minded individuals together to make the purchase assuming the business is for sale. Each investor would probably need several thousand dollars and the casting and mastering skills to create new designs. They would also need to have small business and marketing skills. They would also have to work from a central location in order to maximise efficiency. Everything would need to be done in house. I have no doubt there are people capable of the task but its a question of whether any of them would be willing to take on the responsibility. It will be interesting to see how it pans out.
fseva Posted June 17, 2015 Author Posted June 17, 2015 ...? Wouldn't the molds count as assets for sale? Mold-making and casting tools? Masters, in case replacement molds need to be made? Seems like those would all be worth a bit of coin... Yes, I hadn't thought of the molds...
mike 51 Posted June 17, 2015 Posted June 17, 2015 (edited) The molds wear out, so their value is limited. It's the masters that count. Edited June 17, 2015 by mike 51
High octane Posted June 17, 2015 Posted June 17, 2015 They do keep an inventory of parts as when they come to show, they're loaded for "bear."
fseva Posted June 17, 2015 Author Posted June 17, 2015 They do keep an inventory of parts as when they come to show, they're loaded for "bear." Yes, that makes sense... However, if they sell out at the show, they won't make more just for inventory...
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