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SUSE to go private

suse.com

11–20 of 245 posts

Re: SUSE to go private

#11
post #7

> SUSE’s Management Board and Supervisory Board support the strategic opportunity from delisting of the company as it will allow SUSE to focus fully on its operational priorities and execution of its long-term strategy What does this mean? Is their current status adding some significant overhead that would go away by going private?

Shareholder pressure? Maybe because of their recent goodwill moves against Red hat?

Re: SUSE to go private

#13

What are the success stories of private equity firms taking over a corporation? (Where success is the products are still made, quality and staffing is maintained at previous levels)

None. Private equity's entire business model is to suck the quality and staffing out of the product and make money off the gap between the product getting cheaper and people moving to a viable alternative.

Re: SUSE to go private

#14

What are the success stories of private equity firms taking over a corporation? (Where success is the products are still made, quality and staffing is maintained at previous levels)

Well, SUSE after Novell was in a woeful state, EQT got them to where they are right now.

Re: SUSE to go private

#15

What are the success stories of private equity firms taking over a corporation? (Where success is the products are still made, quality and staffing is maintained at previous levels)

Dell I think would be one?

Basically you get rid of the quarterly reporting grind and it lets you focus on the business even if certain initiatives are going to depress shorter term results, but pay off over the long term.

Re: SUSE to go private

#16
post #7

> SUSE’s Management Board and Supervisory Board support the strategic opportunity from delisting of the company as it will allow SUSE to focus fully on its operational priorities and execution of its long-term strategy What does this mean? Is their current status adding some significant overhead that would go away by going private?

Probably that as a private company it would be easier for them to do things that would have negative short term impact on revenue but be better for the company in the long term.

Re: SUSE to go private

#17
post #3

HN SmartFriends™, what does this mean? What's the risk for companies which are highly invested in SUSE?

The PE firm sees a path to profit by changing things about SUSE. This might be fine - e.g. they can write off the existing debt to themselves in order to strengthen the company finances. If the exit plan is some variant on improving the company and selling it on, could be good all round.

The trepidation is that PE firms are also a bit prone to asset stripping and discarding the remaining carcass of the organisation, in which case this marks the beginning of the end of SUSE.

I've no idea how to tell which path is more likely or even which is their current intent though.

Re: SUSE to go private

#18

What are the success stories of private equity firms taking over a corporation? (Where success is the products are still made, quality and staffing is maintained at previous levels)

None. Private equity's entire business model is to suck the quality and staffing out of the product and make money off the gap between the product getting cheaper and people moving to a viable alternative.

That's been my experience twice now personally, and having read numerous other accounts. They'll always tell you after purchase that's not the case, how they see long term value, want to grow it, etc etc.

It's never true - if PE buys your company, run for the hills.

Re: SUSE to go private

#19

What are the success stories of private equity firms taking over a corporation? (Where success is the products are still made, quality and staffing is maintained at previous levels)

Dell I think would be one? Basically you get rid of the quarterly reporting grind and it lets you focus on the business even if certain initiatives are going to depress shorter term results, but pay off over the long term.

[deleted]

Re: SUSE to go private

#20
post #7

> SUSE’s Management Board and Supervisory Board support the strategic opportunity from delisting of the company as it will allow SUSE to focus fully on its operational priorities and execution of its long-term strategy What does this mean? Is their current status adding some significant overhead that would go away by going private?

SOX and other SEC regulatory constraints and costs. Disclosure rules. Shareholder accountability for strategic decisions. Stricter accounting and audit requirements. Often your board has representatives of large shareholders, who have their own considerations and limitations, as opposed to owners.
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