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Rock Climbing : Comments

Comments by nivlac (3)


Article: Black Diamond Merger Followup
fluxus, I'm surprised you think your commentary is any more informed than "outsiders who know nothing about either company... because they are idiots with attitudes."

What exactly do you know? Are you connected with the c-suite of either company?

I'm uninformed as well, so my opinion is no better than yours. However, when I see a well-funded shell company run by a Wall-Street financier purchase a brand-name company with high overhead, I don't see too many positives.

As you mentioned, this is high-overhead, low margin. The new owner cares about money. That's it. He knows next to nothing about anything else; the brand, the employees, the company's history, that's all subservient to cash.

Experience suggests that an employee may think there's more money to fund R&D. Or maybe experience actually shows that when push comes to shove, cashflow will be diverted to serve the owner's interests. There are many, many examples of company takeovers throughout history that point to a less-than-desirable outcome after a corporate takeover. This merger is very threatening to BD if it doesn't work out for Clarus. And the definition of "working out for Clarus" may surprise the commentators who think BD will always fight the good fight and never let down their employees, brand and customers. Everyone is right to be wary, even cynical.

This reverse merger issue is also moot. Reverse mergers are done for legal and tax purposes, not because there was some intent to keep the BD name. You can merge any way you wish and change the name to whatever you wish at any time.

@mtkinji - you're misinterpreting this merger. BD's best interests are no longer applicable; it is Clarus's best interests that now matter and they are no longer necessarily in line with BD's former employee-owners, especially if they run into a rough quarter or two.

Article: Black Diamond Merger Followup
I suppose I do surprise easily. Next time I won't give you the benefit of the doubt. What I am concerned with, and what you seem to ignore, is the potential for Clarus to strip BD of its funding and its commitment and culture of R&D excellence when the going gets rough. You seem to fail to understand or are actively ignoring the danger to BD if the market gets difficult.

If Clarus gets bloodied, I doubt they will just sell the company back to BD and its employees without taking adverse action. I'm concerned they'll suck BD dry and leave a barely working husk to sell. In the meantime, buyers of BD products will have to have real concerns about the quality of those products.

One of the things I'll be watching for is personnel turnover and changes in BD culture.

Oh, but I'm sure you anticipated all of what I said because you've been talking to BD and its executives. Your ignorant "I was sponsored by BD; ergo, I know what's going on with Clarus" assertion is a pathetic excuse for claiming to understand how this merger may turn out when times turn tough. You may say you're not a noob, but you sure fooled me.

Article: Black Diamond Merger Followup
fluxus,

Two more points. One, although I respectfully think you should grow a thicker skin, I'll apologize if I came across too harshly.

Two, I still think you're not getting my main point. I'm not disagreeing with any of your points, just wondering why you're not seeing the possibility of mine.

I don't know Metcalf personally, and I never claimed to. You were the name dropper, not me. And, more importantly, nobody knows Clarus's mind. Only time will tell how this turns out.

Finally, I do hope for the best for BD and its employees, because I really like their products. Let's hope the better scenario plays out.