Collectors (PSA) Acquired SGC

Snowman · #1 03-05-2024, 02:45 AM

Quote:

Originally Posted by Peter_Spaeth

I don't see how you can possibly know enough about the finances and operations of either company to be able to say this.

That's a strange response. Why would someone need any knowledge at all regarding the finances or inner operations of either company to be able to make such a prediction?

japhi · #2 03-05-2024, 12:05 PM

Quote:

Originally Posted by Snowman

That's a strange response. Why would someone need any knowledge at all regarding the finances or inner operations of either company to be able to make such a prediction?

If we are making predictions without seeing financials, then M&A common sense says they keep the top talent, any IP that makes sense, kill the brand, devalue the existing inventory, and encourage millions of crossovers, or whatever the addressable base is.

If they shutter SGC and win their existing market share (80%) of current SGC volume, that is an additional 1M+ subs per year. Why run an extra location, and additional staff, to slab these at lower costs when you can bring them into the mother ship at better spreads and reduced expense?

I just don't see any valid business reason to keep a like for like lower cost competitor, with sub 10% market share, alive.

Peter_Spaeth · #3 03-05-2024, 12:08 PM

Quote:

Originally Posted by Snowman

That's a strange response. Why would someone need any knowledge at all regarding the finances or inner operations of either company to be able to make such a prediction?

Predict whatever you like. You purported to offer a financial analysis of which option made the most sense.

Yoda · #4 03-05-2024, 12:57 PM

I just wonder how many collectors, sick of the TPG machinations, say the hell with it and proceed to break out all their graded cards and "go raw". Once they put them in a secure holder for protection, then they can pleasantly view them without the interference of a flip to get in the way and $ signs interfere.
I know this approach is for the hard core collector but then they won't have to worry about the fate of SGC.

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