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Allen and Heath bought out!


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Hmmm - being bought out by a private equity company is a mixed blessing - they are going to come under a lot of pressure to grow, from the look of the press release. Acquisition is specifically mentioned as a possible route to growth - any thoughts about who could be up for grabs that would make a significant difference ?

 

Could work well for us in the market...... it depends.....

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Hmmmm, interesting. I am surprised, haven't heard anything from them (yet) via our dealer agreement.

 

The tremendous costs to implement, support and especially market digital consoles has placed all of these companies under financial pressure.

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agedhorse wrote:

 

 

 

The tremendous costs to implement, support and especially market digital consoles has placed all of these companies under financial pressure.

 

Interesting.

If I correctly understand the seeming business model of the private equity company who purchased A&H... they invest in business ventures with the goal in mind of returning 10% - 15% annual dividends (net profits) to their stockholders (absentee owners).

Seems to me that any business that could reliably return 10% - 15% annual dividends to absentee owners... likely wouldn't have been available for purchase.

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agedhorse wrote:

 

Hmmmm, interesting. I am surprised, haven't heard anything from them (yet) via our dealer agreement.

 

 

 

The tremendous costs to implement, support and especially market digital consoles has placed all of these companies under financial pressure.

 

Some more than others I would think.

The skills needed to make a good analog board are very different than those needed to create a good digital board.

With a digital board, it is more about how good your DSP algorithms are vs how good your circuitry is.

The more flexible a digital board is, and the more features it has, the more important good firmware architecture becomes.

This same move came to the automotive market about 20 years ago.  It suddenly became obveous that much of what made the car distinct was software.  The way it accelerates, the way it shifts, the way it brakes, the way the lights turn on and off, and litterally hundreds of little features we take for granted today, are all controlled by firmware.

As a result, the automotive industry has been desperately recruiting firmware enginners for the last 20 years.  Even in the downturn, firmware engineers were still in demand.

This is where I see the music industry today.

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The good news, if there's a silver lining here, is that A&H just revemped the MixWiz line and brought the Qu-16 into the hot compact digital mixer market. So they should be in a good position for the next year or two, unless the new owners take an axe to quality control on the production side. 

 

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