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Interesting, Buell might enter the Polaris stable.


Flyinfool

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Just read an article in the local paper about Buell. Buell is a local company here.

Since Buell is in receivership one of the companies looking to snap them up is Polaris Industries, home of Victory and Indian Motorcycles.

Erik Buell has said that the closed down so fast that they literally could be shipping Buell motorcycles within a couple of days of reopening, there is inventory built ready to ship.

 

Here is the full article.

http://www.jsonline.com/business/with-his-motorcycle-company-up-for-auction-erik-buell-craves-another-comeback-b99535394z1-317329291.html

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Thanks for that article Jeff. I'll keep an eye out to see the outcome.

But, what does this mean?

 

In a court document, Polsky said he believes the "going-concern value of the assets" is greater than their liquidation value.

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With the amount of R&D Polaris put in to making Indian it's own stand alone brand I could really see this working. The Electric TT bikes that Victory put together shows an interest in the sport bike market and with Eric's engineering prowess there are major possibilities. I hope they give him the freedom that H.D. never did.

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Certainly an interesting read Fool, thanks for sharing.. I always thought the term "going concern value" had to do with determining whether or not it was financially feasible for a business stay in operation for a short time while bankruptcy proceeding were in process.. I am with EagleEye in the :think: on that one.. I wonder if, in the context of the story, it just means that the business has production value beyond the actual material asset liquidation value.. Wonder if we got any Accounting major's lurking around here..

I hope somebody like Polaris lands it, they sure did a bang up job in reviving Indian.:178:

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http://www.businessdictionary.com/definition/going-concern-value.html

 

My understanding is that it means that the business being kept together and run as a business if worth more that the physical assets of the company. The assets would be the hard equipment, machines, tools, desks, chairs, pencils, buildings, etc.

 

I wonder just how many bikes are sitting there assembled and ready to ship? The article does say that there is inventory that could be out the door in 2 days after reopening if it is sold as a complete business.

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