@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.
