Talk Morgan Forums Community The Malvern Arms Another senior appointment

There are many ways to crack that egg. In the 90's I worked for a $multi-bn U.S. agricultural cooperative, the farmers were the shareholders. How does one value MMC today ? For every 2,000 TM'ers each chipping-in £500, that's £1m in share capital. Just a thought.

That is the point isn't it John.

You start with X invested and see what the Y is.

Sale to a bigger company against brand, product, access to markets etc (Geely has done a lot in the last few years and brings BEV)
Or float (Aston illustrates how that can be rocky in lower revenue partner which has high dependencies)
Or significant growth to build the value then sell so sit on it for a bit longer.

It will probably be impacted by the tight market we are walking into, ultra luxury still buys, and RR/Bentley have proven that, but lower discretionary spends can tighten. I would guess the current demographic buys but we are a diminishing group? As highlighted the leasing is key to extracting the best out of that space.

I do worry that a Ratners moment is in the offing with the lack of focus on the trad/aero base and service. We may not be the future but we are vocal and I don't know anyone from the future demographic that does not google the fuzzies off something they are going to buy. Pretty mauch any search on Morgan (cars) is going to bring up TM these days.

I think we might need a bit more Tim, take a peek through the numbers around Aston.

Of course VC/PE does not care it went pop shortly after. If it does the sale correctly then it gets it's cash back during the float. If it tanks afterwards that will cut some of the shares they typically leave behind but they are already doing G&T in Bermuda by then.

They call it an exit and it is disscussed at that level. "how many did you exit last year and how many were profitable" "what was your aggregate outcome across them" It's that number that gets people to give them their money to invest and grow on their behalf.

Then again if £1m worth of shares got you a seat on the board you could have some fun. My votes for PeterJ, no prisoners but no malice there! Or maybe TimH, there would be no place to hide anything.

Just to clarify my man-maths: my example was for multiples of 2,000 shareholders, and of course multiples of the arbitrary £500 stake. As for a seat on the Board, I seem to have mislaid the spare £1m that was down the back of the sofa......

I had a quick look at the MMC on Companies House for last year and seem to remember that Goodwill was about £13.5m ( in process of being written off).
What Is Goodwill?
Goodwill is an intangible asset that is associated with the purchase of one company by another. It represents value that can give the acquiring company a competitive advantage.

Specifically, a goodwill definition is the portion of the purchase price that is higher than the sum of the net fair value of all of the assets purchased in the acquisition and the liabilities assumed in the process.

The value of a company’s name, brand reputation, loyal customer base, solid customer service, good employee relations, and proprietary technology represent aspects of goodwill. This value is why one company may pay a premium for another.


So you will need to dig a lot deeper than the back of the sofa £.million .........I'm sure they maybe building the goodwill value upwards for any future disposal of their interest, if they were so inclined. ''As part of Investindustrial’s investment into the Morgan Motor Company, the management team and staff were rewarded with share in the business''.

Doesn't Morgan have one of the most enviable production statistics ie number of cars built still on the road!

" Doesn't Morgan have one of the most enviable production statistics ie number of cars built still on the road! "
Isn't that because they were built in such an old fashioned, simplistic way that they can always be repared economically?
But now they build them like any other car, bonded alluminium....half an accident and they are written off....

Indeed ... Land Rover has a similarly high survival rate ... but that's down to the old Series and early Defenders .... won't be the same for the later 'old-style' Defenders with their electronics ... and definitely not for the Discos and the 'Disco on steroids' that passes for the current Defender. .... most definitely a case of "they don't make them like they used to"!


K

Whilst that is true, I think the old business model had probably run its course in this world of ever- changing gov't rules and regulations.
Everyone has to move with the times, even Morgan. At one time they had a 10 year waiting list for new cars and if they were ever going to expand the company with outside investment, surely that was the time to do it?
Making Morgan less "niche" is almost certainly a good business move, even if us old diehards don't like the sound of it. A lot of what Morgan was built on will not generate enough money nowadays unfortunately.

I agree that the business model had to change. It's just that the new cars don't exhibit the long term survivorability (!) in the construction method. But presumably, commercially speaking, infinite survival of a product is not good for business really...