Howard Has Been Sold

[attitude]

Hopefully this isn’t a Vin.

Speedboat Magazine

www.speedboat.com

 

[CLdrinker]

So a cop bought a boat business? Damn guess they do get paid well.

 

[Dunerking]

Probably along with a fireman buddy!

 

[DILLIGAF]

As long as Mike is running operations they are in good hands

 

[WhatExit?]

Should be good for the Willen family and the company as long as those two continue working well together. Wish them all the best!

 

[Done-it-again]

The guy probably bought into the company. Why would Mike sell out just to work for someone else.

Unless Mike reads the doom and gloom threads on here.

 

[Gelcoater]

The guy probably bought into the company. Why would Mike sell out just to work for someone else.

Unless Mike reads the doom and gloom threads on here.

I don’t know Mike, never met him or talked to him.
I talked with Gene a couple times over the years.

I do know Mike is the gelcoater over there, which tells me if nothing else, he has the ability to make a plan and work it about 5 steps in front of right know’s portion of the plan.


Considering how much bullshit a boat building crew has to deal with in this state?
My opinion is he gone!
Take the money and run!
And I wouldn’t blame the guy in the least.

Now working on with a new owner?
Sure. I can relate there.
Ride the wave, make a living.
With a lot less stress.

From what little I know of this recent development?
Mike is a lot more sharp than some may suspect

 

[RVR SWPR]

No doubt she just does not want go on without him,same for Mike. The Willens defined “family business”

 

[WhatExit?]

The guy probably bought into the company. Why would Mike sell out just to work for someone else.

Unless Mike reads the doom and gloom threads on here.

Just speculating based on the little info provided...

It's common for family businesses to be sold so the family can cash out and recognize a sizeable gain for all the years and work put into building the company. The family gets to bank $$$ and the new owner will typically sign the previous owner/Execs (Mike) to a multi-year contract so he/they stay with the company. It's hard to imagine Howard boats without Mike as he's more than a gelcoater as he's had his hands in the boats' designs.

Whatever the situation is I wish the family and Howard Boats all the best

 

[JFMFG]

Running anything in CA is a cluster f**k. But I can’t understand why you would sell a profitable company to work for someone else.

 

[rivrrts429]

Running anything in CA is a cluster f**k. But I can’t understand why you would sell a profitable company to work for someone else.

It’s where you’re happiest at your core. It’s why race car team owners hire drivers to drive their cars and drivers don’t always make good team owners.

Mike doesn’t like spreadsheets and managing personalities. He’s better suited on the design and build. Seems like a guy who knows himself really well.

 

[Done-it-again]

Just speculating based on the little info provided...

It's common for family businesses to be sold so the family can cash out and recognize a sizeable gain for all the years and work put into building the company. The family gets to bank $$$ and the new owner will typically sign the previous owner/Execs (Mike) to a multi-year contract so he/they stay with the company. It's hard to imagine Howard boats without Mike as he's more than a gelcoater as he's had his hands in the boats' designs.

Whatever the situation is I wish the family and Howard Boats all the best

It’s a custom boat company that builds great boats. With that said, it’s not like you are going to retire at 50 with the sale of it. They just don’t produce enough.

This was the reason I said the new guy bought in to it and not the whole thing.

In any case, will be nice to see what they do with expanding the line up.

 

[farmo83]

I would be curious what is sold for.

As has been mentioned I wouldn't think there is all that much to buy

You're basically buying

-Shop(assuming they own it)
-Future builds( I assume at least a year)
-Molds
-Tools and Materials on hand

 

[COCA COLA COWBOY]

Elon picked up and went to Texas, I think most boat manufacturers are going to leave to survive.

 

[westair]

Running anything in CA is a cluster f**k. But I can’t understand why you would sell a profitable company to work for someone else.

for your health

 

[dribble]

Running anything in CA is a cluster f**k. But I can’t understand why you would sell a profitable company to work for someone else.

It happens all the time.

 

[JFMFG]

It happens all the time.

I guess. But I’d rather have the headache and stress and work for myself vs have to answer to someone else

 

[WhatExit?]

I guess. But I’d rather have the headache and stress and work for myself vs have to answer to someone else

I don't think (speculating) that Mike "has to answer to someone else" - he's certainly a partner and, dare I say, the most important person in the company even after the sale

 

[dribble]

I guess. But I’d rather have the headache and stress and work for myself vs have to answer to someone else

In cases like this you’re not really answering to someone else. You are partnering with someone else on a contract with a multi year term that also likely contains a termination or buyout clause. This allows the buyer to transition into the business and with the sellers help, build a solid reputation (just like Gene did). Also, you learn every nuance of the business. In the meantime, since this sale is probably based on an installment contract, you make sure the business remains profitable and doesn’t get run into the ground before you have to take it back. I have a friend that sold and took back a Corvette repair / restoration business twice. On the third try he stayed on for two years and managed the place.

 

[92562]

I don’t know Mike, never met him or talked to him.
I talked with Gene a couple times over the years.

I do know Mike is the gelcoater over there, which tells me if nothing else, he has the ability to make a plan and work it about 5 steps in front of right know’s portion of the plan.


Considering how much bullshit a boat building crew has to deal with in this state?
My opinion is he gone!
Take the money and run!
And I wouldn’t blame the guy in the least.

Now working on with a new owner?
Sure. I can relate there.
Ride the wave, make a living.
With a lot less stress.

From what little I know of this recent development?
Mike is a lot more sharp than some may suspect

I know some of you know Mike better than I, but I know him fairly well. He is not the gelcoater although he can. He designed and built the 28 Bullet followed by the 25 and 36, not to mention the great 28 Sport Deck and Sport Cat and the new 25 VTX. He also is responsible for the quality of the rigging and fit & finish. He is a great family man who just loves building boats and as others said, doesn't want to deal with the office stuff. At Gene's funeral a lot of us were speculating and hoping that a Howard owner would be able to step up and fill the void. I am pleased to see the change and just wish I could have made it out this weekend for the meet up. And you're right about Mike, he is extremely sharp! I am hoping for the best for the Willens.

 

[MK1MOD0]

I would be curious what is sold for.

As has been mentioned I wouldn't think there is all that much to buy

You're basically buying

-Shop(assuming they own it)
-Future builds( I assume at least a year)
-Molds
-Tools and Materials on hand

Don’t forget, Name recognition,
Company reputation
Customer relationships
These intangibles of the “ Brand” can be worth more than all the above.

 

[Hydroman55]

Yes the boat business is pretty lean on assets mostly intangibles as mentioned.
It’s really about buying into current backlog and potential for growth. Ideally you want to buy company's that have a good product but are being mismanaged and need to be turned around.
Not sure that’s the case here.

 

[rrrr]

Hopefully this isn’t a Vin.

Speedboat Magazine

www.speedboat.com

This "hopefully it isn't a Vin" stuff is funny. It's like there's shame attached to making a repeat post about something. The kiddies that love to be the first one to claim Vin status act like a kindergartner receiving a gold star for drawing an apple.

Carry on.

 

[rrrr]

Don’t forget, Name recognition,
Company reputation
Customer relationships
These intangibles of the “ Brand” can be worth more than all the above.

AKA in financial speak as "goodwill." It is a quantifiable business asset and many times assigned a dollar value in negotiations for the sale of a business.

 

[Backlash]

I'm not trying to be an ass, but how the fuck did he swing this "Purchase" or "Merger" on a cops salary??

 

[Done-it-again]

I'm not trying to be an ass, but how the fuck did he swing this "Purchase" or "Merger" on a cops salary??

Dude.....He's Sargent for LA school police, that has to pay more the a Sargent for LAPD... Its for the kids.....lol

Lets speculate on $$$$ cause I'm bored.. I'm thinking the buy in cost was around 2-288's with 600 power..... Anyone?

 

[Backlash]

Oh I'm well aware of his rank and his salaries, don't you worry. Maybe he had some financial backing or some form of other settlement that landed him in the big leagues.

I would guess the bidding had to be close to the cost of several new boats, but what do I know..... I'm just glad Mike is still involved as he is an extremely talented individual.

 

[FROGMAN524]

I'm pretty sure Hallett was bought buy Nordic for something like $300,000. If the company has strong financials, he could swing a small business loan from the SBA.

 

[92562]

Don’t forget, Name recognition,
Company reputation
Customer relationships
These intangibles of the “ Brand” can be worth more than all the above.

Exactly. Keep in mind that when several boat companies had to shutter after Obama was elected, Howard maintained a backlog and introduced new models. Reputation is everything! Just like Darrell's restaurant!

 

[ONE-A-DAY]

Dude.....He's Sargent for LA school police, that has to pay more the a Sargent for LAPD... Its for the kids.....lol

Lets speculate on $$$$ cause I'm bored.. I'm thinking the buy in cost was around 2-288's with 600 power..... Anyone?

SBA loan, family money, lots of overtime, wife makes bank, wife's family money, really cheap, lots of possibilities, good for him......the real value to a boat mfg is the molds, thats the majority if the cost I am sure, that and goodwill and parts inventory.

I can't imagine what it takes to run a boat company in CA with CARB and all of the other cluster fucks. Eliminator was looking to move up the hill to Victorville area and sell the building for a small fortune, they found out if they moved from their current location they would be screwed with fees for the air quality requirements. There was something about being grandfaterhed in to their current location.

 

[Swain]

You can find everyone who works for the governments salary at https://transparentcalifornia.com/

 

[Done-it-again]

SBA loan, family money, lots of overtime, wife makes bank, wife's family money, really cheap, lots of possibilities, good for him......the real value to a boat mfg is the molds, thats the majority if the cost I am sure, that and goodwill and parts inventory.

I can't imagine what it takes to run a boat company in CA with CARB and all of the other cluster fucks. Eliminator was looking to move up the hill to Victorville area and sell the building for a small fortune, they found out if they moved from their current location they would be screwed with fees for the air quality requirements. There was something about being grandfaterhed in to their current location.

I'm not denying the money and was being facetious regarding school police..

I just don't believe it was anything over 6 digits. Guys got balls though... heading to a slower economy, with a boat company in CA, and water issues with all lakes in 400 miles.... Its not like you are running these decks in the big blue...

Hopefully its a business move and not a "hobby" "LAM" move.

 

[Hydroman55]

I'm not denying the money and was being facetious regarding school police..

I just don't believe it was anything over 6 digits. Guys got balls though... heading to a slower economy, with a boat company in CA, and water issues with all lakes in 400 miles.... Its not like you are running these decks in the big blue...

Hopefully its a business move and not a "hobby" "LAM" move.

You got that right…I wouldn’t invest in recreational companies when the economy is booming.
I don’t even invest in real estate anytime interest rates are in flux upwards.

 

[v6toy4x]

Our boat was midstream when gene passed, every trip I made after that Hamlet was there helping where he could. Mike commented that his help was in valuable.

I am glad for the both of them. I want to know what the "new" idea is???????

 

[RiverDave]

Dude.....He's Sargent for LA school police, that has to pay more the a Sargent for LAPD... Its for the kids.....lol

Lets speculate on $$$$ cause I'm bored.. I'm thinking the buy in cost was around 2-288's with 600 power..... Anyone?

Uh no.. lol. If it was six hundred it would be rdp boats by Howard.. lol. If it was double that it would be rdp boats by Howard. .

The sales backlog they have is insane and there’s a lot of value in that.

As for new ideas? About time Howard jumps on the outboard train among other things.

 

[8dayz]

If he wasn’t an LE would it matter? I’m excited to see what’s next. Maybe a CC with outboards? Seems the V and deck boat size and options are dialed. I would guess, not going into smaller entry level 21’ stuff…

 

[farmo83]

I would SWAG that Howard went for 2X what Hallett went for.

Any thoughts?

Regardless I hope the new owner does well and Howard continues. The industry is small and getting smaller.

 

[Done-it-again]

I would SWAG that Howard went for 2X what Hallett went for.

Any thoughts?

Regardless I hope the new owner does well and Howard continues. The industry is small and getting smaller.

Hallett had nothing...Just molds and very few sales....So for what was posted at 300k, that's a decent price for a truck and 7-8 models and swag.

I still stand at the value of 2 288's with 600 power for the price, little bit over 2x what Hallett went for..

 

[RiverDave]

Hallett had nothing...Just molds and very few sales....So for what was posted at 300k, that's a decent price for a truck and 7-8 models and swag.

I still stand at the value of 2 288's with 600 power for the price, little bit over 2x what Hallett went for..

The price for Hallett would be 1.5 right now if you moved it out of havasu.. another 500 if ya kept it in havasu.

I would think Howard would have sold for at least that just because of the sales backlog.

Doesn’t really matter though, it’s none of my business.

I am really looking forward to seeing what they come up with in the future!

RD

 

[Done-it-again]

Uh no.. lol. If it was six hundred it would be rdp boats by Howard.. lol. If it was double that it would be rdp boats by Howard. .

The sales backlog they have is insane and there’s a lot of value in that.

As for new ideas? About time Howard jumps on the outboard train among other things.

I think you would be surprised then and It could have been yore's.

Outboards on their 288 would look great.

 

[RiverDave]

I think you would be surprised then and It could have been yore's.

Outboards on their 288 would look great.

I talked to Gene many times about it.. I know about what he wanted for it. Not the Bs numbers either..

 

[Done-it-again]

The price for Hallett would be 1.5 right now if you moved it out of havasu.. another 500 if ya kept it in havasu.

I would think Howard would have sold for at least that just because of the sales backlog.

Doesn’t really matter though, it’s none of my business.

I am really looking forward to seeing what they come up with in the future!

RD

You are correct, non of our business what thy sold for or what they can sell for.

What they want for something is totally different and there always a small evaluation above what the books say.....

Hallett for 1.5-2mil only because another boat shop has it and why would they let it go to another person for competition. No way its worth that.

 

[JB in so cal]

Kilrtoy was a school cop and he had a DCB

 

[Seas]

Most people think Gene, being the "front guy" was Howard Boats. But as stated above, every Howard model built over the past 25 years was designed and tested by Mike. Being the "shop guy" he was also the one that oversaw the build quality. In my opinion, without Mike there would be no Howard Custom Boats, at least not with the reputation as one of the West Coast's premier performance boat manufacturers. Sure, a new owner could come in and hire an outside firm to design new models and hire a shop manager, but the legacy/reputation/mystique and quality would suffer. The new ownership, no matter what the "partnership" arrangement is, would be wise to keep Mike happy doing what he does best.

 

[RiverDave]

You are correct, non of our business what thy sold for or what they can sell for.

What they want for something is totally different and there always a small evaluation above what the books say.....

Hallett for 1.5-2mil only because another boat shop has it and why would they let it go to another person for competition. No way its worth that.

There’s an awful lot of molds / models.. I could see it being worth that if someone was going to push the sticks forward on it and revitalize it into what it once was.

 

[92562]

You can find everyone who works for the governments salary at https://transparentcalifornia.com/

$200K per year plus another $67K in bennies, not bad. Good for him.

 

[dribble]

I'm not trying to be an ass, but how the fuck did he swing this "Purchase" or "Merger" on a cops salary??

I know a retired cop who has two Ferraris a shit ton of motorcycles and a beautiful house in Montana. What one did for work isn’t always indicative of one’s overall net worth.