• AddThis Social Bookmark Button

Greed is Good: New Private Equity Firm Looks To Invest In AV Companies


  • December 17, 2008

| Print Page | Adjust Font Size:

Free Home Theater Review Weekly Newsletter.

Enter your e-mail below to get Home Theater Review's weekly newsletter with the latest equipment reviews and home theater news sent directly to your inbox.


*Required
Gordon_Geckco_new.jpg

You can't make it through five minutes of CNN or any news broadcast for that matter without hearing about the gloom and doom of the American and the global economy. Unemployment, automaker bailouts, the collapse of the mortgage industry and so many other factors have everyone from the poverty stricken to billionaires acting, well...scared. This level of fear hasn't missed the AV business as damn near everyone in the consumer electronic space is looking for ways to cut back and prepare for the worst.

Today one of the first signs of greed taking over for fear peeked out of the dark clouds as a new private equity firm called DMC Capital announced that they will be looking to invest in consumer electronics companies in various ways. As explained by Gordon Gecko in the film Wall Street "Greed is good" and never more than today has greed been more welcomed in the consumer business as it will be greed (used not in the pejorative sense) that will bring the liquidity needed to keep the always popular consumer electronics business growing and innovating.

Private equity firms are not new to the world of high end audio video and certainly not to the world of Wall Street. A 49 percent share of Paradigm is owned by the same private equity firm that owns all of MartinLogan. It is only a matter of time until other investors look to buy into to the best, most profitable AV companies at today's bargain prices considering the lack of bank and other liquidity.

DMC Capital Funding is reportedly looking to offer growth funding and financing to well established companies that have between $20 million to $200 million in annual revenue and need financing to expand their reach and market penetration. Leveraging long-standing retail relationships and decades of experience of its principals with consumer product distribution and channel marketing services, DMC Capital Funding is uniquely positioned to provide both capital and advisory services to a broad range of industries.

DMC Capital is taking meetings on possible deals. To schedule a meeting with DMC Capital Funding people can contact Jim Zerka at 212.448.7629. I have a feeling his phone might be a bit busy today however.
 


Keywords

Gordon Gecko, venture capital for AV business, AV industry news, greed is good, greed works, greed is right

Subscribe to the Newsletter
Subscribe to HomeTheaterReview.com's Weekly Newsletter to get the latest news, reviews and insight on the world of home theater, HDTV and audiophile equipment. Subscription is 100% FREE!
*Required
Email Marketing by VerticalResponse
subscribe to rss Subscribe with RSS
Follow home theater equipment reviews and daily news via our RSS feed.
Related Feature News Stories:
  • Comment on this article

    0
Post a Comment

Please answer the following question (required) before posting to help us prevent Spam.


Featured Audio-Video News

High End AV Preamp Sales Boom Despite Recession - Many Models Sold Out

High End AV Preamp Sales Boom Despite Recession - Many Models Sold Out -

While the Great Recession rages on, there are signs of recovery and hope in the AV business. One such ray...

Latest Feature News Stories

High End AV Preamp Sales Boom Despite Recession - Many Models Sold Out -

While the Great Recession rages on, there are signs of recovery and hope in the AV business. One such ray of sunshine is the boom in sales of higher end AV preamps. We don't mean the $30,000 flagship units which... Click for more...

Why "Build It And They Will Come" Never Works in the AV Retail -

Down goes another giant. On February 15, 2010, Creative Home Theatre, located not too far from the Mandalay Bay resort in Las Vegas, will reportedly close its doors for good. Creative was opened during Las Vegas' seemingly unending boom in... Click for more...

AV123.com's Mark Schifter Indicted in Colorado For Alleged Charity Fraud -

A local Colorado new website, TimesCall.com, is reporting that AV123.com's Mark Schifter has just been indicted by a grand jury for up to 27 counts of misappropriating raffle money. The raffles were supposedly designed to benefit charities including the Dana-Farber... Click for more...

Are Today's HDTVs Truly Disposable Electronic Components? -

I have been waiting for a repair on my Panasonic Professional 50-inch plasma for six weeks, with no sign of the set being returned to my living room. When my wife and I completed the renovation of our house in... Click for more...

D.C. Area MyerEmco Chain Slated To Close -

After 55 years in business, Washington D.C. area-based specialty AV chain MyerEmco is slated to close its doors. The Gaithersburg, Maryland firm recently closed a few under-performing locations but when the chain lost the support of its bank - there... Click for more...

Abbey Road Studios For Sale By Equity Firm That Owns EMI -

The legendary Abbey Road Studio has been put on the block by Terra Firma, the private equity firm that owns EMI, in order to raise money. Reportedly the move is designed to raise much needed money in order to keep... Click for more...

What Would Dan D'Agostino Do? -

Have you ever seen those employees at the airport wearing a "What Would Jesus Do?" lanyard attached to their security cards? If you drive around Santa Monica long enough, you might even see a Prius with a "What Would Gandhi... Click for more...

Experiencing Your Dream Home Theater While On Vacation -

It isn't any news that the economy is in the dumps. Morphing your living room, garage or basement into the screening room of your dreams is harder today than ever before but fret not - there is a way for... Click for more...

Finding New Consumers After The 25 Year Boom In Home Theater Is Over -

We are pretty open and overt about how we make our living here at HomeTheaterReview.com. We don't own a store. We don't have an ecommerce portal or affiliate deals. We don't even sell t-shirts or coffee mugs (perhaps someday). The... Click for more...

Kids Enthusiastically Upgrade Their Computers - Why Not Their Audio? -

Today's kids love to download. Be it a hot new app, a funny YouTube video or even a software update from one of their beloved handheld devices - they will enthusiastically download it. They are looking for the next best... Click for more...