Reagan budget director...Romney not a businessman

romney-laughing-theyll-still-vote-for-me2.png
 
Bfgrn said:
Well YURT, either you are obtuse or dishonest...which one is it? The article has numerous examples.
Click to expand...

apparently you do need your dad to help you with a cite. a citation is not merely citing a lengthy article and proclaiming...hey it is in there. it is actually citing the specific example from the article.

you obviously are incapable of that, so please ask your dad to come online and help you.
 
Aoxomoxoa said:
Yeh, he does well for his cronies and himself but screw the poor bastards that Bain sucked up and asset stripped.
Click to expand...

cite some examples.

you do realize that in cases like that, those companies would likely have gone chapter 7 anyway. you don't really understand how it works.
 
cannabis said:
cite some examples.

you do realize that in cases like that, those companies would likely have gone chapter 7 anyway. you don't really understand how it works.
Click to expand...

Ampad is as good an example as any.

In 1992, Bain Capital acquired American Pad & Paper, or Ampad, from Mead Corp., embarking on a ''roll-up strategy'' in which a firm buys up similar companies in the same industry in order to expand revenues and cut costs. Through Ampad, Bain bought several other office supply makers, borrowing heavily each time. By 1999, Ampad's debt reached nearly $400 million, up from $11 million in 1993, according to government filings. Sales grew, too - for a while. But by the late 1990s, foreign competition and increased buying power by superstores like Bain-funded Staples sliced Ampad's revenues.

The result: Ampad couldn't pay its debts and plunged into bankruptcy. Workers lost jobs and stockholders were left with worthless shares. Bain Capital, however, made money - and lots of it. The firm put just $5 million into the deal, but realized big returns in short order. In 1995, several months after shuttering a plant in Indiana and firing roughly 200 workers, Bain Capital borrowed more money to have Ampad buy yet another company, and pay Bain and its investors more than $60 million - in addition to fees for arranging the deal.

Bain Capital took millions more out of Ampad by charging it $2 million a year in management fees, plus additional fees for each Ampad acquisition. In 1995 alone, Ampad paid Bain at least $7 million. The next year, when Ampad began selling shares on public stock exchanges, Bain Capital grabbed another $2 million fee for arranging the initial public offering - on top of the $45 million to $50 million Bain reaped by selling some of its shares.

Bain Capital didn't escape Ampad's eventual bankruptcy unscathed. It held about one-third of Ampad's shares, which became worthless. But while as many as 185 workers near Buffalo lost jobs in a 1999 plant closing, Bain Capital and its investors ultimately made more than $100 million on the deal.

http://www.boston.com/news/politics/2008/specials/romney/articles/part3_main/?page=8
 
For the record, I was the public relations consultant responsible for the content, planning and execution of communications related to the January 2005 reorganization of Ampad and the closing of its flagship manufacturing facility in Holyoke. I was there. Romney had left Bain more than five years earlier. He had no role, responsibility or input in the events that occurred. Yet these events continue to be cited by the Obama camp, with either the complicity of, or disinterest in accuracy by, many news outlets. Such lack of precision in the reporting of other Bain examples pervades.

http://townhall.com/tipsheet/daniel...orker_mitt_romney_is_not_a_venture_capitalist

The steelmaker also closed its Kansas City mill around that time. The Reuters article said that “...some 750 people lost their jobs. Workers were denied the severance pay and health insurance they’d been promised, and their pension benefits were cut by as much as $400 a month.” Meanwhile, Bain received $12 million on its initial $8 million investment, according to the report.

Romney was involved in the initial deal to acquire GS Technologies in 1993, and he has taken responsibility for the investment. But he was no longer actively managing Bain when the steel company filed for bankruptcy protection in 2001 and closed its Kansas City plant, as we noted in a past column. The GOP candidate had left Bain in February 1999 to organize the Salt Lake City Olympics.

http://www.washingtonpost.com/blogs...1351dfe-f927-11e1-8398-0327ab83ab91_blog.html
care to try again tom?
 
cannabis said:
For the record, I was the public relations consultant responsible for the content, planning and execution of communications related to the January 2005 reorganization of Ampad and the closing of its flagship manufacturing facility in Holyoke. I was there. Romney had left Bain more than five years earlier. He had no role, responsibility or input in the events that occurred. Yet these events continue to be cited by the Obama camp, with either the complicity of, or disinterest in accuracy by, many news outlets. Such lack of precision in the reporting of other Bain examples pervades.

http://townhall.com/tipsheet/daniel...orker_mitt_romney_is_not_a_venture_capitalist

The steelmaker also closed its Kansas City mill around that time. The Reuters article said that “...some 750 people lost their jobs. Workers were denied the severance pay and health insurance they’d been promised, and their pension benefits were cut by as much as $400 a month.” Meanwhile, Bain received $12 million on its initial $8 million investment, according to the report.

Romney was involved in the initial deal to acquire GS Technologies in 1993, and he has taken responsibility for the investment. But he was no longer actively managing Bain when the steel company filed for bankruptcy protection in 2001 and closed its Kansas City plant, as we noted in a past column. The GOP candidate had left Bain in February 1999 to organize the Salt Lake City Olympics.

http://www.washingtonpost.com/blogs...1351dfe-f927-11e1-8398-0327ab83ab91_blog.html
care to try again tom?
Click to expand...

So exactly how much money did Bain put into Ampad and how much did they make? Five million outlay for a 100 miiion return and hamstringing the company with shitloads of debt in process didn't have anything to do with its demise, are you serious?
 
Aoxomoxoa said:
So exactly how much money did Bain put into Ampad and how much did they make? Five million outlay for a 100 miiion return and hamstringing the company with shitloads of debt in process didn't have anything to do with its demise, are you serious?
Click to expand...

the facts speak for the themselves.

Nevertheless, Bain’s business decisions at that time helped Ampad to flourish.

http://www.factcheck.org/2012/05/lemon-picking-bain-capital-obama-style/

there is risk in the type of business bain engages in...with risk comes reward or failures. romney just happened to be mostly successful.
 
cannabis said:
For the record, I was the public relations consultant responsible for the content, planning and execution of communications related to the January 2005 reorganization of Ampad and the closing of its flagship manufacturing facility in Holyoke. I was there. Romney had left Bain more than five years earlier. He had no role, responsibility or input in the events that occurred. Yet these events continue to be cited by the Obama camp, with either the complicity of, or disinterest in accuracy by, many news outlets. Such lack of precision in the reporting of other Bain examples pervades.

http://townhall.com/tipsheet/daniel...orker_mitt_romney_is_not_a_venture_capitalist

The steelmaker also closed its Kansas City mill around that time. The Reuters article said that “...some 750 people lost their jobs. Workers were denied the severance pay and health insurance they’d been promised, and their pension benefits were cut by as much as $400 a month.” Meanwhile, Bain received $12 million on its initial $8 million investment, according to the report.

Romney was involved in the initial deal to acquire GS Technologies in 1993, and he has taken responsibility for the investment. But he was no longer actively managing Bain when the steel company filed for bankruptcy protection in 2001 and closed its Kansas City plant, as we noted in a past column. The GOP candidate had left Bain in February 1999 to organize the Salt Lake City Olympics.

http://www.washingtonpost.com/blogs...1351dfe-f927-11e1-8398-0327ab83ab91_blog.html
care to try again tom?
Click to expand...

THE $100 MILLION YELLOW PAD

American Pad and Paper was a 20-bagger—that is, $5 million was invested in 1992 for a $100 million profit, a miraculous outcome for Bain, but hardly so for the Ampad workers and shareholders left holding the bag when the company went bankrupt in 1999 with massive debt.

The company’s combined debt and equity was then being valued at $1.1 billion—or a fantastic 35X the $30 million of operating free cash flow (EBITDA less capital expenditure) that Ampad actually posted during 1997. However, within weeks of the IPO and a profits warning, the fast money smelled the rat and followed Bain in scampering off the listing ship. Margins were being squeezed by the superstores faster than the promised synergies could be realized. By early 1999, the stock was delisted and when the company was finally liquidated in bankruptcy shortly thereafter, secured lenders recovered about $100 million and other creditors got zero—that is, the company was worth about 10 percent of its peak valuation.

Try again YURT. Romney was there for the whole fiasco.
 
cannabis said:
the facts speak for the themselves.

Nevertheless, Bain’s business decisions at that time helped Ampad to flourish.

http://www.factcheck.org/2012/05/lemon-picking-bain-capital-obama-style/

there is risk in the type of business bain engages in...with risk comes reward or failures. romney just happened to be mostly successful.
Click to expand...

This is a more realistic view from a surprising source.

Romney co-founded Bain Capital in 1984, a spinoff of management consultant firm Bain & Co. He stayed until 1999, except for a brief two-year stint back at Bain & Co.

"Basically Romney got the Bain Capital job because he was 'teacher's pet' in Bain, and Bain Capital was bound to do well because it had all the very smart people finding deals and having ideas about how to run companies," said Money Morning Global Investing Strategist Martin Hutchinson. "Initially, it focused on venture capital, which genuinely creates jobs, like its work at Staples Inc. (Nasdaq: SPLS), but later it moved to leveraged buyouts, which generally don't create jobs, and can hollow out the company making it vulnerable to failure."

When private equity companies engage in leveraged buyouts, they usually lay off some of the acquired company's workers, as well as take payments in the form of dividends and fees. The target companies are usually sold.

Romney has been highlighting his Bain successes throughout his campaign. In addition to office supplier Staples, the group invested in Dominos Pizza Inc. (NYSE: DPZ) and retailer Sports Authority. Romney claims that projects like these created 100,000 jobs during his Bain tenure - although Bain has no documentation to prove it.
Click to expand...

http://moneymorning.com/2012/01/10/how-bain-capital-could-sink-mitt-romney/
 
Bfgrn said:
LMAO! And Mitten wants to double down on 'trickle down' 'voodoo' economics. Reagan on steroids. At least one of you right wing turds admit that Republicans created our debt.
Click to expand...

Again Bfgrn... Congress controls the purse strings... as I mentioned in another post he did it along side Reagan and Tip's House. I know left wing nuts refuse to ever acknowledge Congress's part in the budget process, but at least try to read what is written and comprehend it.

Again Bfgrn... both supply side and Keynesian theory work... IF they are implemented correctly. We have seen failure on the parts of both due to the incompetence of the two parties. Burying your head in the sand and shouting 'it's just the other guys' is just what the two parties want you to do. It is what allows them to continue the status quo.
 
Bfgrn said:
Romney strip-mined cash from healthy businesses and recycled it mostly to the top 1 percent. Mitten made himself rich, by making other people poor. That is not a businessman, that is a vulture.
Click to expand...

The above is simply nonsense spoon fed to you by the left wing blogs.
 
Aoxomoxoa said:
Ampad is as good an example as any.
Click to expand...

LMAO... yes, it really is a good example. Tell us... what was the status of Ampad at the time of the take over by Bain?

In 1992, Bain Capital acquired American Pad & Paper, or Ampad, from Mead Corp., embarking on a ''roll-up strategy'' in which a firm buys up similar companies in the same industry in order to expand revenues and cut costs. Through Ampad, Bain bought several other office supply makers, borrowing heavily each time. By 1999, Ampad's debt reached nearly $400 million, up from $11 million in 1993, according to government filings. Sales grew, too - for a while. But by the late 1990s, foreign competition and increased buying power by superstores like Bain-funded Staples sliced Ampad's revenues.
Click to expand...

Funny how the above from the left always leaves out the fact that Ampad was highly profitable from 1992 until 1998... six years of growth from company that otherwise was going to be a shut down division of Mead. But lets ignore that and pretend it didn't happen. Yes, the company ended up going through reorganization. The point is that the company remained in existence (it still exists today) in a highly profitable manner for years longer than it otherwise would have.

Why do you ignore that aspect Tom?

The result: Ampad couldn't pay its debts and plunged into bankruptcy. Workers lost jobs and stockholders were left with worthless shares. Bain Capital, however, made money - and lots of it. The firm put just $5 million into the deal, but realized big returns in short order. In 1995, several months after shuttering a plant in Indiana and firing roughly 200 workers, Bain Capital borrowed more money to have Ampad buy yet another company, and pay Bain and its investors more than $60 million - in addition to fees for arranging the deal.
Click to expand...

Tell us Tom... do you think Bain would have made even MORE money if Ampad had remained profitable? Do you think they wanted to lose the rest of the value of their equity? Do you want us all to ignore the fact that more competitors came into the market place and hammered the profitability of Ampad? Are we to ignore all the other factors that led to Ampad going through restructuring Tom?



Bain Capital took millions more out of Ampad by charging it $2 million a year in management fees, plus additional fees for each Ampad acquisition. In 1995 alone, Ampad paid Bain at least $7 million. The next year, when Ampad began selling shares on public stock exchanges, Bain Capital grabbed another $2 million fee for arranging the initial public offering - on top of the $45 million to $50 million Bain reaped by selling some of its shares.

Bain Capital didn't escape Ampad's eventual bankruptcy unscathed. It held about one-third of Ampad's shares, which became worthless. But while as many as 185 workers near Buffalo lost jobs in a 1999 plant closing, Bain Capital and its investors ultimately made more than $100 million on the deal.

http://www.boston.com/news/politics/2008/specials/romney/articles/part3_main/?page=8
Click to expand...

Tell us Tom... how long would those Buffalo workers have had their jobs if Bain didn't acquire the division from Mead? Oh yeah, they would have lost their jobs in 1992/93.

Funny how you also ignore the fact that many of the workers at Ampad still have their jobs today. You focus on the plants that didn't make it while ignoring the fact that the company is still in business.

You want to talk about the workers at Solyndra now Tom? Why don't you tell us how Obama caused them to lose their jobs?
 
Aoxomoxoa said:
So exactly how much money did Bain put into Ampad and how much did they make? Five million outlay for a 100 miiion return and hamstringing the company with shitloads of debt in process didn't have anything to do with its demise, are you serious?
Click to expand...

So... what was Mead going to do with that division Tom? Oh yeah, they were going to shut it down. But holy crap, because Bain made money (as did the workers who kept their jobs thanks to Bain) you want to pretend it is a high crime.
 
Bfgrn said:
THE $100 MILLION YELLOW PAD

American Pad and Paper was a 20-bagger—that is, $5 million was invested in 1992 for a $100 million profit, a miraculous outcome for Bain, but hardly so for the Ampad workers and shareholders left holding the bag when the company went bankrupt in 1999 with massive debt.

The company’s combined debt and equity was then being valued at $1.1 billion—or a fantastic 35X the $30 million of operating free cash flow (EBITDA less capital expenditure) that Ampad actually posted during 1997. However, within weeks of the IPO and a profits warning, the fast money smelled the rat and followed Bain in scampering off the listing ship. Margins were being squeezed by the superstores faster than the promised synergies could be realized. By early 1999, the stock was delisted and when the company was finally liquidated in bankruptcy shortly thereafter, secured lenders recovered about $100 million and other creditors got zero—that is, the company was worth about 10 percent of its peak valuation.

Try again YURT. Romney was there for the whole fiasco.
Click to expand...

The current company formed in June 1992. Formerly the Ampad Holding Corporation, American Pad & Paper was created as a holding company to purchase Ampad Corporation. Originally established in the 19th century, Ampad invented the legal pad in 1888. Since then, it has been a prominent supplier of pads and paper-based writing products. In 1986, Ampad found itself a subsidiary of Mead Corporation. It remained so until July 1992 when Bain Capital, Inc. and the management of newly formed American Pad & Paper Company purchased the subsidiary from Mead. Since its inception in 1992, the new company has seen net sales grow at nearly a 53 percent compound annual rate through 1996, increasing from $8.8 million in 1992 to $200.5 million in 1996. In July 1996 American Pad & Paper became a public company, a surprising move for such a well-established private enterprise.

National Scale and Service Capabilities

Upon its formation, American Pad & Paper consolidated its 13 manufacturing and distribution facilities into six in 21 locations in the United States. It maintained more than 3.7 million square feet of production and warehouse facilities in California, Colorado, Georgia, Illinois, Massachusetts, Mississippi, New Jersey, New York, Ohio, Pennsylvania, Tennessee, Texas, Washington, and Wisconsin. This network of strategically located manufacturing and distribution centers provided the company with the means for rapid and efficient order fulfillment and advanced EDI capabilities for executing automated transactions.

The company's national reach and service capabilities ensured its purchasing advantages and economies of scale. For more than 30 years, American Pad & Paper maintained strong, long-term relationships with paper mills. It consistently ranked as one of the larger buyers of principal paper grades used in manufacturing and continued designated mill relationships with recognized paper mill brands, including Hammermill, Hopper, Neenah, and Strathmore. The relationships helped the company to achieve consistently a broad price point coverage.

Paper Prices

Paper, the principal raw material for American Pad & Paper, influenced the direction of the company perhaps more than any other external factor. Since 1989, the average paper prices increased less than 1 percent annually. Nevertheless, the prices of some commodity papers were much more volatile than that. In 1994 paper costs and supplies required that American Pad & Paper modify the prices on some product lines without prior notice to customers. Beginning in 1995, the company instituted new pricing policies that set product prices consistent with the cost of paper at the time of shipment.

These paper purchasing and distribution advantages--in addition to modern, efficient manufacturing technology and a high-quality work force--allowed American Pad & Paper to achieve low-cost operations. From 1992 to 1996, for example, the company's fixed marketing costs decreased from 7.4 percent to 5 percent of its net sales. Similarly, American Pad & Paper's selling, general, and administrative expenses fell from 10 percent to 8.2 percent of net sales during the same time period.

Innovation and New Products

American Pad & Paper offered customers an extensive product line and a multitude of brand names, notably the Ampad and private-label brands. The company quickly became one of the largest manufacturers of pads and paper-based writing products. By 1996 American Pad & Paper offered more than 2,400 SKUs (store-keeping units) of writing pads, notebooks, and specialty papers. Its products appeared in multiple sizes, paper grades, colors, and bindings (for example, glued, perforated, or wire bound).

New products also differentiated American Pad & Paper from other suppliers and increased its profitability. During 1992 to 1996, new products accounted for $155 million of the net sales for 1996. Some new items introduced included Gold Fibre classic and designer notebooks, Papers with a Purpose, World Fibre ground-wood writing pads, and Peel & Seel envelopes. Since 1994, American Pad & Paper also initiated innovative packaging for its customers, including bulk and crate packaging for warehouse clubs.

Growth Through Acquisitions

In July 1994, American Pad & Paper acquired SCM, a hanging folder and writing products company. Though this acquisition brought increased potential to the company, it also brought some strife. When American Pad & Paper attempted to bring work rules and costs at the newly acquired plant in Indiana in line with market labor agreements, workers there balked. In September, plant employees initiated a strike, resulting in American Pad & Paper's closing of the Indiana plant in February 1995. By the following July, all machinery and equipment moved from the plant to another production facility.

Undaunted by these events, American Pad & Paper pursued a second acquisition about a month later in August 1995. The company purchased selected file folders and products from the Globe-Weis office products division of American Trading and Production Corporation. The acquisition of these brand names bolstered American Pad & Paper's position in filing supplies, making the company one of three large filing supply manufacturers in North America. By 1996, American Pad & Paper offered its customers more than 800 SKUs of filing supplies, including file folders, hanging files, index cards, and expandable folders. American Pad & Paper focused on large retail customers and contract stationers to expand its market share until it achieved status as the leader in filing supplies. Although the company's right to use the Globe-Weis trademark on a nonexclusive basis would expire in 1998, American Pad & Paper expected no adverse effects from the loss of the name.

American Pad & Paper's $300-million acquisition of WR Acquisition and Williamhouse-Regency Division of Delaware, Inc., a wholly owned subsidiary, in October 1995 positioned the paper company as the largest manufacturer of envelopes for paper merchants and distributors and for office products superstores. In particular, American Pad & Paper established a specialization in envelopes manufactured from mill-branded paper; that is, paper unique in color and texture to a mill with an identifying watermark.

When the company acquired Williamhouse, a leader in mill-branded, specialty, and commodity business envelopes and machine papers, it greatly enhanced its role as an envelope manufacturer and supplier. Williamhouse historically sold materials to paper merchants and distributors. After the acquisition, American Pad & Paper became the designated manufacturer for 33 mill brands--double that of its closest competitor--including Hammermill, Strathmore & Beckett, Hopper, Neenah, and Gilbert.

American Pad & Paper sold the Regency Division of the newly acquired Williamhouse for close to $48 million in gross proceeds in 1996, the year that the company acquired Niagra Envelope Company, Inc., for $53 million. Niagra Envelope Company supplied mill-branded, specialty, and commodity envelopes to paper merchants and distributors through four manufacturing facilities in Buffalo, Chicago, Dallas, and Denver. In 1995 Niagra's net sales totaled $106 million, and its operating income was $8.5 million. The acquisition of this company strengthened American Pad & Paper's distribution in the Midwest and added to its manufacturing capabilities.

After buying Williamhouse and Niagra Envelope, American Pad & Paper offered approximately 30,000 SKUs of envelopes. Important envelope products included standard-size and specialty envelopes from commodity paper, pressure-sensitive Peel & Seel envelopes, and giant, X-ray, and remittance envelopes. American Pad & Paper also supplied Tyvek envelope products, such as those used in booklet and catalog mailers and metal-clasp or button-and-string envelopes. (Tyvek--a high-density, polyurethane-based substance--is manufactured by DuPont.)

In February 1997 American Pad & Paper acquired Shade/Allied, Inc., for nearly $50 million. Based in Green Bay, Wisconsin, Shade/Allied supplied continuous forms to paper manufacturers and distributors and to retail customers. It maintained manufacturing facilities in Green Bay, Seattle, Atlanta, and Philadelphia. In 1996, Shade/Allied earned $90 million in net sales.

The purchase of Shade/Allied established American Pad & Paper in its fourth major product category. The acquisition made American Pad & Paper one of the leading manufacturers of machine papers such as ink-jet papers, printed formats, fine papers (including cotton-content and laid papers) and continuous forms. American Pad & Paper also became one of the larger manufacturers of invitations, announcements, Christmas and holiday cards, and presentation folders in 1997. The company sold this product line to paper merchants and distributors, to personalizing businesses such as the former Regency Division of Williamhouse, and to wholesale outlets throughout the United States.

Read more: American Pad & Paper Company - Company Profile, Information, Business Description, History, Background Information on American Pad & Paper Company http://www.referenceforbusiness.com/history2/70/American-Pad-Paper-Company.html#ixzz2Ayq9R6AR
Click to expand...

poor Bfgrn, so dishonest
 
You must log in or register to reply here.
Back
Top