RUMOR MILL - NO MORE YELLOW AND BLACK IN PRO STOCK? (1 Viewer)
- Thread starter mikebcurve
- Start date
In defense of Jegs, Jegs started out as a single speed shop and due to his foresight in business it blew up to what it is today.
mick
Nitro Member
absolutely, but the question some folks have, is why not hand it off to family? instead of taking the premium payoff offered by outsiders?
it happens everyday. something goes from being a grandson or granddaughter's legacy, to just a series of +'s and -'s on a spreadsheet.
FreddieCougar
Nitro Member
Yup. pure capitalism, but my point stands. They destroyed the local shops and WD's. I watched it happen first hand. Predatory pricing, strong arming manufacturers, etc. I get it, they did what they did and made a ton of money, but they irreversibly damaged the industry. I have never spent a penny at either of the giants and never will....
mick
Nitro Member
exact same thing the large box stores did to smaller, local retailers. it's the same. it is natural progression in our system. there is nothing wrong with striving for more success tomorrow
than yesterday.
ironpony
Nitro Member
I have been involved in small business for many years. I know many people that have taken the payoff and sold out. If you are in certain businesses it is a daily occurrence and is how you make money. I myself buy, restore and sell homes. I normally own several at a time. When I sell it goes to high bidder.
I have people contact me daily as to if I want to sell XXX property and some actually are prepared to make offers, if it is where I want to be it is sold.
I have a friend that owns a storage facility 9 acres very lucrative. A trucking company comes in and offers him roughly double what it's worth. He will walk away and never have to do anything again. SOLD.
Every person in this thread would do the exact same thing as him/JEGS has done. It is business. Does it hurt someone down the road ? maybe.
I have people contact me daily as to if I want to sell XXX property and some actually are prepared to make offers, if it is where I want to be it is sold.
I have a friend that owns a storage facility 9 acres very lucrative. A trucking company comes in and offers him roughly double what it's worth. He will walk away and never have to do anything again. SOLD.
Every person in this thread would do the exact same thing as him/JEGS has done. It is business. Does it hurt someone down the road ? maybe.
Do you know for sure that anyone in the family wanted Jegs? Or would they rather inherit the money Jegs got from selling out?
mikebcurve
Nitro Member
While I’m not a fan of these type of acquisitions, I kind of get it. Every situation may be different, but the one thing I see again and again is a company grows as far as they can with available funds, while competition continues to grow and take market share. If you want your company to survive you may need to cash out to a company with big pockets, otherwise down the road you may not have much company left to sell. Even if family wants to continue you may have to make the tough decision and put it in more capable hands.
I feel like outside of drag racing Jegs buzz has not been what it was in the 80’s and 90’s. I grew up here in central and southern Ohio. Jegs hats were everywhere. Nearly every other car with a young driver had a Jegs sticker on it. I rarely see one in public anymore. I see Summit stickers more often.
Who knows? They may have worked out a deal that sees them continue to have a share in the profits or take a percentage of the next sale after it is pumped up and resold at a premium to the next buyer. All these deals are so different. You’ll likely never know the details when it is a non public company such as Jegs. Regardless of the future they sure have been good to drag racing.
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Professional Fan
Nitro Member
At least they are pulling the plug early enough to give Troy time to find a sponsor, unlike some where we have seen the rug pulled out close to the beginning of the season.
He has for 2023?
I was NITRO BREATH
Nitro Member
Mike, the fact that ‘it happens every day’ should show how complicated it is to continue a family business. I know from experience that the younger generation doesn’t always want to be involved. It might have been a heart breaking decision or maybe just a bottom line calculation, I have no idea. But nothing lasts forever.
If you read the bios, only one of them mentions working in the business as an interest.
I read that the 3 son's of Sr. Bought and run the company with some help from the kids. As in many family business the 3rd generation many times opt out of the business as it looks like in this case. The 3 boys also have Coughlin Bros Racing. So at the ages of 50+ selling off some of the business should give them a very good bag of $$ to sit on while also collecting income while still working at Jegs.
Jeg Sr. also has family in the auto sales dealerships around Columbus area. 1 is a top 5 Corvette sales in the nation. So I'd say the Coughlin families aren't dumb about running a business.
As for Jegs forcing small speed shops to close. Buckeye Sales the wholesale div of Jegs sold to many smaller shops. I left the speed shop world in early 80s soon after the mail order thing took over.
Yep they tried in Toledo but wheels seemed to be there deal, but Toledo had Capital Tire.a WD for about every aftermarket wheel mtg. So Super Shops didn't last long.
