Posted On: 09/21/2016 10:05:19 AM
Post# of 75087
I don't think Li would buy RMHB to "squash" the competition. Do the math. Why spend $3.5+ million to squash $227,000 in sales? Plus, she's taking on $13+ million in debt. Nothing about that math supports anything but a turnaround.
So, you can be assured she is buying RMHB to make it profitable and turn those numbers around. I thought I read that one of her specialties is turning around companies. Someone correct me if I'm wrong.
So, RMHB is right up her wheelhouse. She'll cut costs by ramping up economy of scale for manufacturing, reduce the top heavy management team salaries/compensation by downsizing them and inserting her people (sorry, it's true), and increase marketing to drive sales.
Basic turnaround strategy 101. Maybe she'll renegotiate the debt structure as well. My concern is that she transfers ownership of all RMHB assets to the Chinese RMHB company, then files bankruptcy on the US RMHB corporation to wipe out the debt and then uses the Chinese corporation to sell RMHB in the US.
So, you can be assured she is buying RMHB to make it profitable and turn those numbers around. I thought I read that one of her specialties is turning around companies. Someone correct me if I'm wrong.
So, RMHB is right up her wheelhouse. She'll cut costs by ramping up economy of scale for manufacturing, reduce the top heavy management team salaries/compensation by downsizing them and inserting her people (sorry, it's true), and increase marketing to drive sales.
Basic turnaround strategy 101. Maybe she'll renegotiate the debt structure as well. My concern is that she transfers ownership of all RMHB assets to the Chinese RMHB company, then files bankruptcy on the US RMHB corporation to wipe out the debt and then uses the Chinese corporation to sell RMHB in the US.
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