[Stan Weiss]

Has anyone heard anything about or know if it is true that IOP / Industrial Opportunity Partners purchased CPG / Comp Performance Groups?

http://classracer.com/classforum/showthread.php?t=75338

Stan

[PAUL K]

No....but no surprise. Their highly educated management team will come in, screw everything up and raise prices. Then think they did a wonderful job and pat each other on the back.

[mgarblik]

I found on the IOP website the ownership of Edelbrock. Nothing on CPG yet, but that would not be surprise or a stretch in any way. I see them following the Holley plan. Step one: Acquire well established, well positioned companies with tremendous name recognition, loyal following, strong product development, and quality products. Step two: Promise huge return on investment to investors. Step 3: Find everyone making 75K or more in salary and fire them. Step 4: Find Chinese vendors who can functionally copy the product line and produce product for 10-15% of current costs. Step 5: Sell inferior product for same price as previous production and live off the name for 5-10 years. Step 6: Sell off shell of what's left of the companies. Step 7. Move on to next victim. Conglomerate business in action.

[PAUL K]

Originally Posted by mgarblik

I found on the IOP website the ownership of Edelbrock. Nothing on CPG yet, but that would not be surprise or a stretch in any way. I see them following the Holley plan. Step one: Acquire well established, well positioned companies with tremendous name recognition, loyal following, strong product development, and quality products. Step two: Promise huge return on investment to investors. Step 3: Find everyone making 75K or more in salary and fire them. Step 4: Find Chinese vendors who can functionally copy the product line and produce product for 10-15% of current costs. Step 5: Sell inferior product for same price as previous production and live off the name for 5-10 years. Step 6: Sell off shell of what's left of the companies. Step 7. Move on to next victim. Conglomerate business in action.

Close.... You missed the "raise prices". I'm a Holley WD. They raised prices January 1 2019, July 1 2019, January 1 2020 and February 1 2020..... Screwed everything else up but nailed the price increase!

[Geoff]

MSD is part of the Holley umbrella. Recently looked at the instruction sheet for the MSD #8360 R-T-R dist. It states the vac adv unit requires '15 pounds of vacuum'.
I hope the people building the dists have more brains than the people writing the instructions!!

[242177P]

Originally Posted by Geoff

MSD is part of the Holley umbrella. Recently looked at the instruction sheet for the MSD #8360 R-T-R dist. It states the vac adv unit requires '15 pounds of vacuum'.
I hope the people building the dists have more brains than the people writing the instructions!!

15英寸的压力.

[TheGrudge]

Originally Posted by PAUL K

Close.... You missed the "raise prices". I'm a Holley WD. They raised prices January 1 2019, July 1 2019, January 1 2020 and February 1 2020..... Screwed everything else up but nailed the price increase!

.....and then there’s “sell direct/online for the same price you wholesale to the small/low volume stockists”

[ponjohn]

Originally Posted by PAUL K

No....but no surprise. Their highly educated management team will come in, screw everything up and raise prices. Then think they did a wonderful job and pat each other on the back.

OR if it is private equity the will strip the company of all equity and run it is as lean as possible to extract the most profit and sell it in 3 years.

[PAUL K]

Originally Posted by 242177P

15英寸的压力.

Makes sense to me

[A.W.Dille]

This is the first I've heard of this. Considering the customer service I encountered several years ago I am not surprised. Took me over a month before I could get any response. Both phone calls and e-mail'

[tom s]

I wish they would buy a billet making company!Custom cams from most people now take longer than they should.JMO,Tom

[Half-Inch Stud]

Let us hope the talent starts a Made in U.S.A. spinout.

Maybe new tooling, etc

[Dragncar]

Originally Posted by A.W.Dille

This is the first I've heard of this. Considering the customer service I encountered several years ago I am not surprised. Took me over a month before I could get any response. Both phone calls and e-mail'

I called them this week and asked about rebuilding some roller lifters. I was told they did not do that anymore but would give me 200$ some new ones but only if they were Endure X. Got right through with no wait.
Crower still rebuilds theirs, around 340$.

[mgarblik]

My experience has been that the companies that make really high end, quality parts offer a rebuild service. BME, Crower, Jesel are a few examples. They are smart enough to understand that race parts fail no matter what and the parts are designed in a way that they can be serviced. Non-rebuildable, throw away parts , tells me most of what I need to know about their quality.

[Elarson]

It's interesting that most independently owned racing parts companies help professional racers and help sportsmen racers who have unusual projects that they want their parts associated with. Mike and I have benefitted from that over the years. But when a company gets bought by investors, the sponsorship programs are the first to get cut. Then come layoffs of the expensive employees who actually know what they're doing. Then the product quality gets the cost cutter treatment. And so the downward spiral goes.

Eric

[Lee]

About 30 seconds of research, and I found this: https://www.iopfund.com/investment/i...rket-platform/

[PAUL K]

Originally Posted by Lee

About 30 seconds of research, and I found this: https://www.iopfund.com/investment/i...rket-platform/

You have a knack for taking the fun out of Internet foder.

[Skip Fix]

Unfortunately the way of our world now. Look at pharmacies, dental offices, heck hospitals. In my veterinary profession corporations are becoming big players in ownership(and decision making in those practices) from individual practices to large specialist practices. Mars(yes the candy bar company) is one of the big players internationally! Also they own numerous pet food companies. Most corporations figure if they cam squeeze 7% profit margin out they will be happy, just depends how they do it. Some understand practices are successful because of the individuality and quality of their "product" and do not want to change that others you have to fit in their mold.

In fact I forget if it was Mars or one of the other big corps they ad to divest of some of their clinics in one region as they almost had a monopoly.

Back when I did NMCA racing the Smelitnicks owned it and John McWhirter had been an owner(He had a killer 66or 67 tri power 442 in my class). Ivars also owned RHS.

[hurryinhoosier62]

Looks like IOP is the performance world’s equivalent of the Freedom Group in the firearms world. Freedom Group learned some very hard lessons when they toyed with reducing the quality of Marlin rifles. It cost them customers and profits. Hopefully, IOP won’t go down this road.

[steve25]

I could not agree with or said any better what's in post 3!

It's a good thing that 3D printing at home is becoming real because that's the way we will all neeed to head to get good quality parts in general!