All-Star Interesting Agreement

[Ashley]

Agree. If you look at the Charlesbank website, they have a pretty clear mission statement. They aren't looking for weak companies that are on the downtrend to sell off, they are looking for major investment opportunities and growth. Straight from their website:
Investment Philosophy | Charlesbank
Investment Criteria | Charlesbank
Partnering With Management | Charlesbank
Value Creation | Charlesbank

Well that's the point of any PE firm. That's literally what private equity is.

 

[catlady]

Varsity Brands also includes Herff Jones and some other sporting company. That's not all cheerleading money.
Being bought by a PE firm isn't really going to change much. They'll pump capital in and collect on their investment selling down to the road or taking the company public.
That's my (minor) understanding of PE. I don't think much will change. Varsity is nothing more than an investment for Charlesbank.

Well that's the point of any PE firm. That's literally what private equity is.

I only added the website for those that might not understand what Charlesbank does, I certainly didn't mean to insult anyone that is familiar with PE or what this firm specializes in. I do, however, disagree with "not much will change". The OP asked, "How this would change the cheer industry or will it?" I believe they are aiming to make huge strides overseas in acquisitions and grow as much as they did domestically. Will things change here in the States? Probably not much, but those that are looking for a new destination for World's may see that happen in time.

 

[quietmom]

There's a lot of money in cheer uniforms and apparel yo

They obviously don't price uniform costs for fabric by the inch...........

 

[Official OWECheer]

I am also wondering about how this will change things for non-varsity brands. Seems pretty clear that Varsity aims to expand and compete, so I worry for them. (Though I , admittedly, know very little about who finances competing brands.)

TBH I better not hear any of the coaches that order from Varsity (and have a choice to not do so) complaining if Varsity absorbs all other cheer vendors.

 

[megaflipper]

You thought competition fees were expensive before, wait until they take over.

 

[dawgshow]

You thought competition fees were expensive before, wait until they take over.

Not necessarily. They don't want to price them out of their market.

 

[dawgshow]

They obviously don't price uniform costs for fabric by the inch...........

Whoa! Howdy stranger