Outerlimits Sale Complete
 

Best of luck to everyone involved moving forward, http://speedonthewater.com/in-the-ne...-sale-complete.

Like I said In a post a little while ago, outerlimits could not be in better hands! Way to go Joe!!!

I see nothing in the future for Outerlimits but positive moves.

This company has been the leading edge for many years now and I am sure they will continue to lead the high performance field in the future.

Good move. Great combination with Joe on board.

They don't come any more highly qualified than Joe Sgro but this move still surprises me. Everyone had been going on about how great Outerlimit's future looked with the then current ownership. I wish them well and at least Baja didn't get it!

The "then current ownership" is still involved. Good for everyone involved.

Congrats Joe, I'm sure the company will be in good hands..

WOW thats great...... I just wonder ...... How much coin it takes to purchase a company like that??? I can't even fathom.. no pun intended. Always a class act company, with a great product.

Will be exciting to see some new projects from them for sure. I'm sure all parties involved put a lot time and effort to make this happen. Exciting times for outerlimits. Good luck to them!

Had the pleasure of meeting and talking to Joe while at North East performance in Bridgeport Ct. several times. I wish him, and the Company the best of luck. Look forward to seeing what they come out with.

Congrats Joe! You will do great!!!!

Awesome great company. RIP MIKE.
Grow with sgro

Congrats to all. Glad to see the brand and Mike's dream continuing into the future!

Good to hear there is someone taking it to the next level.


Why did they change their name?

When you sell a company like that, you sell the all the assets and equipment from one "company" to another "company" to make a clean break from one to the other. This helps in taxes, debts, etc.....

http://www.providencejournal.com/art...29583/0/SEARCH

Congrats to all parties and good luck with the future!

Glad to see they are going to be sticking around. Great people making a great product. Way to put Rhode Island on the map now too :)

Congratulations to Joe!! With Joes offshore experience he'll be able to help out the other very long standing partner. It'll be exciting to see the new co-ownership grow and help propel outerlimits further with their designs and technology. It must be exciting news for the extremely talented team in bristol..Congrats!!!

Good question on purchase price. You might be surprised.

http://www.providencejournal.com/art...29583/0/SEARCH

Great link, and, if true, it confirms that the current OL team will be retained! :)

It's true

All true, but what does this mean for ongoing warranty support on boats from the original company?
Let me be clear, I'm not casting stones here, just asking as other brands have had significant issues with this in the past when ownership changed hands.

Can't speak for the company obviously but I'm sure they won't do anything to turn away any of there customers. Seems like they maintain close ties with current OL owners.

I am sure that the OL team with Joe and Dan will do the right thing for their customers past and present.

Technically, the new company is not held to the debts, assets, warranties, etc. of the old company because they are only buying the equipment from the old company and not the old company itself. It is a new company and unless there are conditions or otherwise that go with the sale, there is no technical tie between the two companies. This will protect the new owner(s) from any outstanding claims, debt, etc. held from the old company. I have seen this first hand in my industry and also fell victim to a similar situation when I bought my Donzi, filed a suit against them, they sold off and I had a suit against a asset less company.

Tom A. Good info. I wonder if it also Helps with creating good relationships with vendors that may have lost some money in the past?

Sounds like a nice story and great for the employees but aren't there a few issues not being addressed?
i) With the sale being managed through the courts people will lose real money like in any bankruptcy. Look at teh billions
GM is making now and all the bankrupt families in their wake
ii) Why was there so much debt of this was one of the most successful boat builders?
iii) Probably explains why there have been so many fund raisers for the family, boat building is about passion not getting
rich
This comment on the article is interesting

Phoenix Rank 6975
Mark Russo in particular and both business court judges are the most corrupt in Rhode Island. They STEAL businesses from rightful owners for their own pockets!!! Rampant impropriety and fraud!!! They are racketeers and should be in prison.

Very happy to be told this positive news. Great company for our sport.

I can't even imagine how many politics are involved with this though, most we will never know the truth about.

All involved have done a very good job keeping this all secret, and maybe that's best, but obviously there curiosity.

Asset sale means the liabilities stay with the original owners, so the proceeds of the sale would have been used to pay down the debt, otherwise I would imagine the creditors would have never agreed to the sale. The old company still exists hence the reason to set up a new named co.

This is a different type of sale than an equity sale, where your shares of the company are sold, effectively transferring all assets and liabilities to the new owners.

I know nothing about OL's finances but all boat builders struggled after 2008 so that would be one cause for debt accumulation. OL also never really entered the "CC craze" and CC's saved many boat builders during those lean years.

Everyone looks at the price of boats and while it is staggering they forget the cost of the overhead and labor costs. Article mentions 30 employees, even if they only made $600 a week that payroll easily balloons to over a million dollars a year (with taxes, workers comp, etc)......just at the minimum of $600 a week, which many will make more. Lets fantasize that you make 100K per boat, you then need to make 10 boats every year just to cover the $600 a week payroll! :eek: Drop the figure to 50K a boat (net profit) and suddenly you need to make 20 boats a year just to cover payroll! :eek: :eek:

If anyone can make OL go.....Dan and Joe are those guys!

Prior to 2008 when things were good they probably lived good also if you get my drift

sorry bad link so I removed it

The boats are going to get faster also. According to the caption under one of the pics, Merc is also supplying them with 11,000 hp engines. Lol

Had this in a email and posting it as the sale was finalized. There is 2 pages to the story so click over to page 2 as well. One comment post is afterwards posted about the sale. It is NOT my comment just to be clear nor I do not know the person who posted it.

http://www.providencejournal.com/art...29583/?Start=1

Tom posted that link in post 14. I missed the 11,000 hp engines. Cool. I want one. :lolhit:

1100, 11000, whatever it takes

If the Fiore's couldn't make it solvent what's to make it work on any other stage.

Does the articles actually say OL is bankrupt? I don't think so, it would be public and big news. Think sometimes the courts are involved when its a probate deal. It says a large debt, doesn't mean the business wasn't servicing that debt.

They were in receivership

Starting at zero debt and fresh capital injection could make for a good start!

Mike started with nothing in 1993 and was still going almost 23 years later shows the model can work.

Outerlimits will come out of this betwe than ever. Like joe said in the interview there in the best financial situation that they have been in 7-8 years.

They where Not in receivership while mike was here running his company. The company was put into receivership after Mikes passing just to finalize the sale of the company. Just a clarification.

Is everyone sgro fans now? I thought we were supposed to be mad at him for being implicated in the boat theft ring? I can't keep with who's on the naughty/nice list ��