Texas Mastercraft - No More...

[MCOR]

Considering they’re the highest revenue dealership in the world, it is absolutely not because of lack of money.

Then MarineMax must have made TXMC ownership an offer they couldn't refuse. 1-3 years of working for MarineMax, then Jimmy retires.

[eecyclone]

https://www.tampabay.com/news/busine...s-mastercraft/

[bturner2]

Important thing to note is that Jimmy and team is staying onboard to continue to run the company the way we are used to things going.

While I am skeptical/disheartened by this news as well, I trust Jimmy will ensure the TXMC name and experience remain the same as we are all used to. Name won’t change either.


Just praying they don’t corporate BS a place with a model that is working extremely well and has been since their inception. I am staying positive that this will just expand the already stellar operation that Jimmy, Todd and team have built over the last 20 years.

Unfortunately this is wishful thinking. I've seen mergers/acquisitions like this several times with companies owned by friends, family and unfortunately was working at a company that was acquired by a larger company so I have some first and second hand experience with these types of situations. Typically keeping the management team on is part of the deal, and in most cases is enough to keep key employees on long enough to transition the dealership to a new business model. This strategy is also used to calm existing customers concerns and any distrust in the merger by current customers. In all likelihood within 2 years you'll be lucky to know 2 or 3 of the original employees.

Sometimes these acquisitions are good, sometimes not so good. The local BU dealer had turned into a real **** show after the original owners had a blow out and ownership changed to the partner that was the finance guy. Apparently while he was good with numbers, he wasn't so good on the sales/service aspect of the business. Within a couple years the business was falling on hard times mostly due to poor service. Tommy's came in, purchased the business and are actually running the place really well. They too kept the key people for about 2 years but I no longer recognize anyone that is currently working there.

I suspect Texas MasterCraft is not going to be any different than any other acquisition. Keeping the current management team was probably part of the deal and will most likely be there for a year or two before moving on. If they were the owners they'll have a difficult time transitioning from owner to employee as regardless as to how their positions were described to them they are now employees.

Hate to see this happen as you basically move from a local business to a corporate enterprise and that is seldom good for the local community. Hopefully it'll all work out for the best for everyone.

[MC25]

Time will tell. I will continue to stay optimistic until I have a reason not to be.

[allzway]

I sure hated to get this email. While I am sure initially things will go fairly smoothly, with most mergers and acquisitions though... they never turn out good in the end.

Money becomes an issue and cuts begin.

Disappointed to see it, but that is how business goes sometimes.

[allzway]

They need to keep Jeff!

Absolutely they do... but big corps cut customer service almost immediately so he may not get to be as helpful as he is now.

[Upnorth07]

MarineMax also bought Nisswa Marine (or completed the sale) earlier in 2021. Nisswa Marine took on MasterCraft 4-5 years ago and has done outstanding with the brand. They were long-time family owned and well-run but MM gobbled them up. The family and every employee is still working there today. The article said MarineMax was especially interested in them because they service/winterize/store nearly 1,000 boats each season.

My sales person buddy said this was a good thing for the employees and was excited. My guess is they went from no/little benefits to better benefits than they were when it was family run and that is why the employees are happy? I was initially disheartened but well see.

https://www.nisswamarine.com/

[moosehead]

Kudos to TX MC for running a tremendous business long-term and earning a rare capital event in an otherwise tough business.

That said, best guess is MM paid a peak multiple on peak EBITDA in this heated capital market. If the music doesn't stop for either the boat consumer or the investment market, then perhaps the vaunted TX MC service culture can continue.

However, if someone takes away the punch bowl, then all bets are off, and the corporate shareholder pressure will be applied. Inflation, labor costs, supply chain issues, and expected Fed tapering combine to create further skepticism of big company tendencies.

[Morety]

https://www.tampabay.com/news/busine...s-mastercraft/

This quote is so good!

Texas MasterCraft’s specialty is towboats, which pull water skiers and jetskis, though it also sells pontoons and other watercrafts.

I guess MasterCrafts can pull jetskis when they break, so not technically incorrect.

[peytonvp]

Then MarineMax must have made TXMC ownership an offer they couldn't refuse. 1-3 years of working for MarineMax, then Jimmy retires.

That is the only thing I can think of that makes sense. I can understand why MarineMax would want to have the highest volume MC dealer in the country and can't fault ownership for taking good money while the market is as crazy as it is right now.

[CantRepeat]

*carmax has entered the chat*

Carvana beats carmax to the punch!!

Where gonna see boats in a big glass cylinder!

[LDA6339]

Time will tell. I will continue to stay optimistic until I have a reason not to be.

This is the correct response. It is still time to hope for the best and get to know the folks at HTX.

[TolCarMan]

Carvana beats carmax to the punch!!

Where gonna see boats in a big glass cylinder!

Let's do this thing. Boatvana coming to a mall near you!

[MC25]

This is the correct response. It is still time to hope for the best and get to know the folks at HTX.

I’ll visit the boys at Buxton before I drive to Houston for service lol

[dbrayton1]

I don't see how a corporate giant like Marine Max gives the flexibility to do the right thing for the customer like Tx Mastercraft does. Keep Jeff is spot on, but I don't see the flexibility he would need.

The new banner with the announcement is Paint on a Pig, People are great, but corporate "rules" will eventually be the end of what was great customer service. Merger? Cough. Marine Max bought them. I have seen this countless times in Cybersecurity, acquisitions, mergers, and it always changes the small/nimble startup into the culture and operating procedures of the acquiring company.

As another cybersecurity industry guy, I completely agree. I also worked for Oracle where we destroyed the hopes and dreams of about 50 companies we acquired over the 4 years I was there ;-)


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