We certainly appreciate the influences a single person can have on retailers and brands, but
is it too much to suggest that Berkshire recently paid $250 million to essentially acquire the services of one individual? We had some discussion here recently about Oriental Trading recently. This was a company that had been run into bankruptcy by previous management, and was acquired by KKR for something equivalent to $250 million, overall.
KKR installed a new CEO to turn the place around, which he apparently did, and within about 18 months KKR flipped the business to Berkshire Hathaway for $500 million. Omaha’s Oriental was worth $500 million to us with the fellow, and his year of magic behind him. However it was not worth $250 million the year or so earlier, before he was on board. True, we ‘don’t do turn-arounds’ -- but we can perhaps still learn some lessons about business value from them.
is it too much to suggest that Berkshire recently paid $250 million to essentially acquire the services of one individual? We had some discussion here recently about Oriental Trading recently. This was a company that had been run into bankruptcy by previous management, and was acquired by KKR for something equivalent to $250 million, overall.
KKR installed a new CEO to turn the place around, which he apparently did, and within about 18 months KKR flipped the business to Berkshire Hathaway for $500 million. Omaha’s Oriental was worth $500 million to us with the fellow, and his year of magic behind him. However it was not worth $250 million the year or so earlier, before he was on board. True, we ‘don’t do turn-arounds’ -- but we can perhaps still learn some lessons about business value from them.