Ryan’s principle does not make sense. It does not line up with the knowledge that’s obtainable.
Harley by no means went for a full acquisition. All of the information that I discovered was that Harley purchased a stake in Alta. They have been seeking to solely buy a stake in Alta: https://dirtbikemagazine.com/alta-harley-davidson-partner/ This was in March 2018.
6 months later (August 2018), Harley backed out of the funding plan. Most likely paying a hefty chunk of change within the course of too. Alta went out of enterprise 2 months later in October 2018.
So what seems like much more cheap is that Alta was making an attempt to court docket traders like Harley Davidson, however their funds have been truly horrible and so they have been bleeding money. Harley investigated the state of the corporate, figured they have been in deep shit, and walked away from the deal.
Ryan stated “in the event that they by no means struggled to lift funds”, however is that true? In 2017, the corporate solely raised $27 million of their sequence C spherical. Yeah, no, that is not practically sufficient to maintain a producing firm like Alta. If their yearly gross sales have been what, 1000 bikes a yr, at $10k a motorcycle, that is $10 million in income, with $27 million in investor funding, they do not look near having the ability to maintain an organization with 100+ workers doing manufacturing.
As for why did bombardier solely buy bits and items of Alta? That is easy. Alta had a supplier community and clients with guarantee obligations. Shopping for the entire firm means taking over these obligations. So why purchase a failing electrical filth bike enterprise when you’ll be able to simply purchase the necessary components?