d&b and SFL Group

[Simon Lewis]

An interesting move... SFL join d&b....

 

https://www.sfl.live...-the-db-family/

 

https://www.dbaudio.com/global/en/about-db/press/newsroom/db-launches-new-solutions-business-acquiring-full-service-uk-integration-firm-sfl-group/

Edited May 4, 2021 by Simon Lewis

[Stuart91]

The way the press release is written it's almost as if D&B have bought SFL? The mentions of "existing management being kept in place" suggests more than just a partnership.

 

The interesting thing about that kind of a move is how other companies will react. There are several loudspeaker brands that I won't propose for installations, because the manufacturers or distributors will also undertake the same jobs directly. They could undoubtedly undercut our prices to get the work, so there's no point trying to compete with them.

[Simon Lewis]

The way the press release is written it's almost as if D&B have bought SFL?

 

The d&b release is far more explicit.... d&b have acquired SFL.

 

The interesting thing about that kind of a move is how other companies will react.

 

Indeed... I wonder what effect the l'acoustic's / DeltaLive takeover had, and whether it influenced this decision. I wonder too what the Solotech companies in the UK will make of it....

[Dave m]

BlimeyThey were originally started by mates of the younger brother of a friend.They certainly have grown.

[Simon Lewis]

BlimeyThey were originally started by mates of the younger brother of a friend.They certainly have grown.

 

I started my little hire operation around the same time as Mark, and was probably doing bigger events, but whereas I wasn't that ambitious (or successful !) and eventually followed other opportunities, he kept growing and improving!

[dje]

Indeed... I wonder what effect the l'acoustic's / DeltaLive takeover had, and whether it influenced this decision. I wonder too what the Solotech companies in the UK will make of it....

 

A practice commonplace in the huge industrial corporations is relying on 'partners' to handle sales and integration whilst the brand develops, then once the brand reaches a strong enough market position, acquiring one or some of the partners and moving the sales and integration aspect in-house. You can offer a better price to the end client and make more money than you were before. Squeeze out the competitors, then snap them up for bargain prices too.

 

Not suggesting D&B will do that, mind. I don't think L'Acoustics have. They still seem to be doing a good job of supporting their other UK users - Solotech (SSE/BCS being the LAcoustics carriers), Brit Row, Adlib etc.

 

But often at the top of these companies the shareholders, CEOs etc went to the same businesses schools that head up the huge multinationals corporations... so it's hardly surprising when the seeds are planted for not dissimilar business practices is it?

 

I guess the moral of the story is that when running an intermediary business (ie a hire shop, installer, sales etc), becoming too reliant on a sole supplier is a risky business.

[Stuart91]

But often at the top of these companies the shareholders, CEOs etc went to the same businesses schools that head up the huge multinationals corporations... so it's hardly surprising when the seeds are planted for not dissimilar business practices is it?

 

In many cases, the owners are the same venture capital funds and "buyout groups" as you'd find in any other industry. D&B are owned by Ardian, although it seems that they were looking to sell. They aim to buy companies cheap, and essentially flip them for a profit. Nothing inherently wrong with that as a business endeavour, but it's a world apart from the owner-operator model that much of our industry still works to.

 

I guess the moral of the story is that when running an intermediary business (ie a hire shop, installer, sales etc), becoming too reliant on a sole supplier is a risky business.

 

Good point. It's essential not to have all your eggs in one basket, but also wise to rein in some of the sales puff.

 

I know of one company that had to backpedal somewhat when they lost the dealership for loudspeakers that they'd long claimed were superior to everything else on the market. Suddenly another brand was the top solution, but the sales pitch rang a little hollow the second time around.

 

 

 

I'm still struggling to see how the acquisition makes sense for D&B, though. Either SFL were selling more D&B product than everyone else combined, or they're confident that the rest will keep buying. It seems counter-intuitive for anyone that isn't SFL to be specifying D&B now. They'd be handing a slice of their margin to the competition, and can be easily underbid.

 

Also why, as a loudspeaker manufacturer, would you want to get into the messy business of rentals, plus the non-audio aspects?

 

I know nothing of the numbers involved, but I'd expect that D&B could have spent significantly less money, and set up a very comprehensive UK distribution / support operation, to work with any company willing to take the brand on. Keep out of the trenches, don't compete with your customers, but make it as easy as possible for companies to use and promote your products.

 

I could be completely wrong (and there's probably a reason why global brands aren't waving their chequebooks at me) but I'm still puzzled by the whole thing.

[dje]

Also why, as a loudspeaker manufacturer, would you want to get into the messy business of rentals, plus the non-audio aspects?

 

I have some thoughts but I don't know that they're appropriate here... this business is still trading and I think it'd be better to let them speak for themselves than speculating wildly.

I can't see that it'd make any sense for a manufacturer to buy a big hire company. All they'd be doing is buying back a lot of their own equipment (much of which would be technically obsolete anyway).

 

And yes, you're right about venture capital. It's all the same bunch of vampires operating that game, whether your business is PA speakers, coffee or health insurance.

Edited May 5, 2021 by dje

[Dave m]

BlimeyThey were originally started by mates of the younger brother of a friend.They certainly have grown.

 

I started my little hire operation around the same time as Mark, and was probably doing bigger events, but whereas I wasn't that ambitious (or successful !) and eventually followed other opportunities, he kept growing and improving!

 

I was involved in bands late 70's early 80's with mates, and they were about ten years younger I think?

 

We used to use SKAN PA which was Pete and Grizzly plus a transit.

Chuffing loud in sweaty venues

Last time I saw a SKAN system it was a bloody great pantechnican

Doing international touring now.

Although I think Pete passed away before it got huge

[MarkPAman]

We used to use SKAN PA which was Pete and Grizzly plus a transit.

 

Got my first real tour work with them - mostly cos I was FOH for a band doing the South England part of a tour support slot, then stepped in on mons for the headline one night and ended up doing the last dozen or so dates. Was a bit more than a transit by then though.

 

Happy days!

[Andyb]

Interesting times.

No longer a mention to the strategic partnership with white light from last summer on the sfl website anymore...

https://www.whitelight.ltd.uk/white-light-and-sfl-announce-strategic-partnership/.

Production AV have joined the club too at sfl.

[Yorkie]

I don't know much about business, or the organisations in question but it does seem rather an odd move. SFL do way more than just sound and aren't just a d&b house

[sunray]

In '95 I started working for a small nightclub lighting and sound company. It consisted of a couple of ex mobile jocks plus an office person. I don't know of all the arrangements but it seemed to me we were inexcricably tied to Martin Professional, we held ringfenced stock for their repairs and did some of their installs too.

 

 

In some ways it was good as any demo/hire kit was FOC and pretty much ring and collect, being based virtually in the same town meant there were quite regular journeys back and forth by both companies. I did find that sometimes our work suffered when Martin said jump though and our unit was frequently stacked high with their rip out stuff and not always what we ripped out either.

 

[georgeveys]

Interesting times.

No longer a mention to the strategic partnership with white light from last summer on the sfl website anymore...

https://www.whitelig...c-partnership/.

Production AV have joined the club too at sfl.

 

Our partnership with WhiteLight is still very much alive, just a broken web link from google :)

 

White Light and SFL Announce Strategic Partnership - SFL

Edited May 6, 2021 by georgeveys

[Pete McCrea]

Interesting times.

/snip

Production AV have joined the club too at sfl.

 

Oh we joined the club well before it was a cool place to be ;-)

 

SFL have held a share in Production AV since 2010, when one of the original directors sold up. We’d talked for years about fully merging, but never did more than talk and take small steps as we were too busy. Last year was pretty quiet work wise (for some weird reason!) so let us get on and sort things like this.