Does anyone want to take any bets on what the sale of Steinway Musical Instruments to private equity firm Kohlberg will mean? Its as if the Stradivariius shop had been sold to bain capital. First there will be an analysis of overall cost efficiency and then a monthly scrutiny of each product line. each month costs will be shaved to extract an additional $5 of profit from each unit. "do we really need a solid spruce soundboard on the piano? Our chemists have invented a substitute synthetic that costs half as much and increases shareholder return." and all those little expensive parts in the action represent unsustainable employee salaries. So the world will lose a beautiful piano. And the profits from strangling the company will buy lots of caviar and porsches for the kohlberg executives. The piano is currently manufactured in ny and hamburg. A one way ticket to china is floating across my crystal ball.
Posted on: Wed, 03 Jul 2013 21:09:17 +0000
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