Why the hate for mcintosh amps?

@atlanticstereoYour post indicates an innocent but erroneous opinion of the role that VC/PE firms serve to a business. My reply to your post below is intended only to provide perspective, not to throw shade your way.

Don't shoot the Messanger just stating facts - in my experience over the last 25 years in being in the AV industry every time a Private Equity company purchases a product that has been manufactured with Soul and Passion it ceases to have the build quality. If you know how a PE makes money, it's plan is to recoup its investment in 3 to 5 years from the purchase date. Think....How can they do that ? Find a way to make it cheaper and open up distribution... Shocking ? Who sells your beloved Mac now ? BB ? You can find it all over the net ... Go back in time and research how many great companies ( Fosgate, Levinson, Boston Accoustics, Infinity, Warfdale, Denon, Marantz, Pioneer Elite, Sunfire I can go on and on)  that were purchased by PE and where are they now ? Mac has weathered the test of time because it still looks great and it has a loyal following in the Asian market. I'm not saying its a bad product just not the same product that got its reputation when Frank McIntosh started the company in 1948.

PE firms aggregate cash and invest it to make a return on their investment. They don’t make charitable grants. Many of the firms you mention above as having been ruined by PE were actually rescued (or not) from an inevitable extinction by the infusion of cash or more accurately in some cases they were sold a bill of goods by a founder(s) who were looking for an exit strategy to monetize their life’s work. 
The high end audio industry is a tough slog from a business standpoint to make a market or better rate of return on their imvestments. So many in our hobby view those engaged in the hifi business, be it in retail or manufacturing, as being in the business to serve the hobby in some monastic and altruistically pure manner. Thats unfair and an unreasonable position to take. Like McIntosh or don’t. Appreciate the role VC/PE plays or don’t but please at least make a cursory attempt to understand what you are talking about before commenting.

Full disclosure: I am not engaged in VC/PE or high end audio although I have investments in VC/PE firms.

McIntosh is like Buick…its a fine vehicle, offends no one unless they are easily offended and the Asian market loves them disproportionately. 

In addition, people to whom a Buick is a high priced luxury vehicle, it is. I seem to recall that the nuns were adamant that it was a sin to disturb the faith of others.

@atlanticstereo

Would you enlighten us as to why all private equity is bad? By definition, private equity is one or more entities investing in a business whose ownership interests are traded between private hands, rather than interests whose shares are publicly traded. McIntosh is owned to a substantial degree by its key personnel.

I’m neither friend nor foe of McIntosh, I just happen to have mild contempt toward those whose first post carries a negative tone.

@atlanticstereo
VC/PE isn't the problem. The fact is that any time the founder/creative driving force of any organization departs the business, random outcomes happen. This isn't unique to high end audio. If the business fails, an argument could be made that the person didn't set the organization up for success through proper succession planning.

In your post above, you cite Krell as an example of a firm damaged by PE investment. Someone else might make the case that Mr. D had run the firm he successfully built into the ground, necessitating HIM bringing in outside investors. Those investors, after prolonged financial underperformance, removed him. I have never owned Krell, never considered it. Its my understanding that some of their new amp designs are quite good and present a good value. I'm just stating that sometimes a business comes along and thrives because of a good idea or two AND good timing. If a business isn't viable, it isn't viable. Had there been great ideas in the pipeline when Mr. D left the firm, they probably would have done ok. The same goes for Cary Audio...Dennis Had left many years ago and I can't think of a product they make that is inspiring...it doesn't mean they aren't great or doing well as a business...heck there are examples too numerous to list of companies whose products we enjoyed where they weren't viable over the long term....there are others to the contrary.  The method for capitalizing a business isn't the culprit, its the business model and the presence of proper capitalization.

Congrats on being in the industry and congrats on what has likely been the best two years in your business. I assume you are in it to make a profit and its highly likely if you are are quite profitable, that you are engaged to a large degree in home theater. If I were in the business, which I am decidedly not, I would want to have McIntosh in my product line.  What would you rather have? Sony? Yamaha? Marantz? Bryston? Arcam?

McIntosh today is a far more diversified and viable business than at any time in their history.  Purists and those heavily influenced by nostalgia forget how close McIntosh was to ceasing to exist. Dark days indeed when Clarion purchased them for pennies but there was enough corporate culture internally to survive through the years to come out the other side with the possibility of nurturing their mojo. McIntosh makes good gear, it isn't to my taste, but they make fine products. I wouldn't invest in a company that caters to me, that's too narrow of a market...but I do enjoy what I enjoy. If I buy a Shindo or a Leben or a Devore product and they pass away, sell or change their business direction either by choice or by acquisition, that's the way it goes. Its just an audio system.

My final point is that you describe some mystical obligation to the consumer by the manufacturer. That's unreasonable. Buy what you like, you get it and then you either enjoy it or you don't. There is no perpetual obligation on the part of a manufacturer to evolve in the manner you determine or think best, thats for the owners of the company to determine and the obligation of the retailer/consumer to choose accordingly thereafter.

The short answer though, if you are a retailer and you aren't the McIntosh dealer, you have to work a little harder. Peace.

@jb1

Well said

@atlanticstereo


You stated that you are a dealer, which to your great credit you havent attempted to hide. I’ll take that at face value and good for you.

If you are in fact a dealer though, now that you’ve listed your opinion of "the finest" product, Steinway-Lyngdorf, that you would "personally" go "toe-to-toe" about I now wonder if you might just happen to be a dealer for that particular product? If so, ironically, you should probably disclose that. Not that I would be a candidate either way. I apologize in the event you are not a dealer for Steinway-Lyngdorf, however, I’m not even a little bit sorry if you are a dealer for their products and did not disclose it.

It might come as a surprise to you as well that, if memory serves, Steinway is owned by a VC/PE firm controlled by John Paulson. I also think (I’m not certain) that Lyngdorf is privately held by Peter L. along with investors, which again, could be properly categorized as VC/PE.

And finally, I prefer not to participate with your newsletter, podcast, twitter, instagram, reddit, facebook, etc. Especially if you are a dealer for the product in question and failed to disclose same.

@atlanticstereo

Nevermind, I just did a quick google search. You appear to have a fine business, congratulations.

Your website lists that YOU ARE A DEALER for Steinway-Lyngdorf.