Revzilla to be bought out.

[alphonsus_imp]

rbike, I understand that you are sceptical, but your out of stock situation is very unlikely to have anything to do with the company's valuation. Firstly, Revzilla has been around for 9 years and their valuation was likely based on profitability results and trends during that whole period. Secondly inventories affect the balance sheet and cash flow but not profitability, since the cost of inventory is only accounted when those goods are sold. (Thirdly, since such a large transaction will have been pored over for months by highly paid investment bankers and accountants, unlikely that a cheap trick like that will increase the valuation they come up with.)

I'm not familiar with cycle gear as I live in Europe but even I know and like Revzilla, watched many of their review videos and also followed the company out of interest. I think any smart buyer will realise they are buying a brand that is built around customer service, so it's unlikely they will start by firing all the "gear geeks". Also I'm sure the founders will care and have a strong interest in who they sell their "baby" to and under what conditions. Overall it's a good thing for them, they built a great company and deserve the payoff, and it's great motivation for future entrepreneurs, so in the long term deals like that can lead to more and more new and customer oriented businesses popping up.

I'm not surprised. I noticed stock was out on items I was looking at purchasing. That is the first thing companies do as they prepare to sell out - Make the profits look higher by not replacing inventory. Typical current bad business practice. Maybe that is what 7d has done to me!