'Pop' Goes the Private Equity Bubble...

From the NY Times Dealbook Blog:

Hear that sound? That was the private-equity bubble finally getting pricked on Thursday, as the market for debt — the jet fuel that had propelled it to dizzying heights — slammed shut.

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What does this mean for the outdoor and snow sports industry?

From the folks I've spoken with, it means that the astronomical valuations for acquisitions are a thing of the past. If you own a small business, and you've been waiting for the right deal to cash out, you're probably too late. At this time last year, if your company had $20 million in sales, it would not be unreasonable to see $25 up to even $40 million from a private equity firm, if they thought the future growth and cash flow were right. Today, you'll be lucky to get $21 to $22 million.

This also means the door is wide open for strategic buyers - folks like Jarden (k2's parent now) and Timberland, who are acquiring smaller brands for strategic purposes (other than making loads of cash for their investors).

In an interesting side note, Dick Heckman, former president of K2, filed an amended statement with the SEC regarding his "blank check" IPO. He now expects to raise over $400 million for an acquisition war chest with no firm targets. Basically, he is asking Wall Street investors for a $400 million check to buy whichever company he sees fit. There's no word on whether or not he'll be returning to the outdoor or snow sports industry with this money, but we'll be keeping our eyes on him.

This Week in The B.O.S.S. Report

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THE B.O.S.S. REPORT. KNOW MORE. NOW.

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TOP STORIES:
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o OR Summer Market: Footwear blends outdoor and
action sports...
o The New Green Consumer...
o Zumiez increases guidance on strong second quarter...
o Kästle brand re-launches with new investors...
o Gander Mountain Q2 loss wider despite comp sales gain...
o Shimano sees balance first half growth...
o Dick’s SG ups guidance; “private brands” gain momentum...
o Other Stories include Spyder, Tecnica, Superfeet,
Giro, Pacific Brands, and many more...

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Looks Like the life of a PR Hack ain't so bad after all

from Inc.




Tree House: Carson Stanwood traded his dark log house for a light-filled home in the trees.

Now this is interesting...

Senior Designer - Nike ACG - Dick's Sporting Goods - 8/20/2007
Department / Location: Product Development / Corporate Office Reports To: Director of Design Fully responsible for entire product design process for the larger and more complex brands to include market research, mood board creation, designing, sketching, specing and fit. Responsible for researching global markets in order to identify new trends and innovation.

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Quote of the week...

“Historically, we haven’t seen many of our new hires leave after the holiday period. We do this huge hiring to get ready for the season, and it gets super busy. Then when January and February come around, it doesn’t return to the pre-holiday level. It slows down a little bit, but what happens is we make the majority of our seasonal employees full-time. When I started in January of 2005, we had 112 people. Today we have about 375. We are poised to hire all of our seasonal help shortly and I am projecting that by first quarter of 2008, we will have a sustained headcount of about 550.”

Charla Brown - HR Director for Backcountry.com

Life with Daily Deadlines...

Here is the OR daily crew in CD's (Denny Ink.) "VIP" Shuttle returning to and from the Open Air Demo in SLC. Lou and I joined them all for the ride and we were all fighting car sickness and deadlines on the return trip.

This Week in The B.O.S.S. Report

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THE B.O.S.S. REPORT. KNOW MORE. NOW.

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TOP STORIES:
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o OIA and SIA get win in latest ITC report...
o Jarden sees strong Q2 in Outdoor Solutions segment...
o Under Armour sees solid across-the-board Q2 gains...
o Sport Chalet sees challenging fiscal Q1...
o Dorel Q2 driven by Pacific Cycle bike sales...
o Timberland continues to struggle in Q2...
o Sierra Club economic report reinforces OIA findings...
o Big 5 second quarter net income hurt by macro trends...
o LaCrosse Q2 driven by outdoor...
o Cabela's Q2 income soars in spite of slow comps...
o K2 Inc. settles merger-related litigation...
o FDA warns outdoor retailers about botulism contamination...
o Other Stories include REI, Hot Chilly's, Mountainsmith,
Columbia, Unifi, Hestra, Osprey, and many more...

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A Highway To Mt. Everest?

The Associated press is reporting that Tibet has halted plans to build a highway to Mt. Everest.

LINK

Tibet has put on hold plans to build a highway on the side of Mount Everest to ease the Olympic torch's journey to its peak, a government official said Friday.

The project, budgeted at 150 million yuan (US$19.7 million; euro14.7 million), was to have turned a 108-kilometer (67-mile) rough path into a blacktop highway that snaked from the foot of the mountain to a base camp at 5,200 meters (17,060 feet)...

In April, organizers for the Beijing Summer Olympics announced ambitious plans for the longest torch relay in Olympic history -- an 85,000-mile, 130-day route that would cross five continents and reach the 29,035-foot summit of Everest, the world's highest peak.