https://finance.yahoo.com/news/outdoor-grills-maker-weber-files-122343928.htmlAnother grill (and pellet grill) manufacturer filing for an IPO.
Here is how I see these scenarios.
1. Privately held family owned company sells to private equity for a decent payday and has to remain a shareholder with x% ownership equity.
2. Private equity invests some money in company and it starts to grow.
3. Pandemic hits. People decide to buy new grills (pellet or otherwise) since they are not going out to eat anymore.
4. Revenue and profits grow dramatically for private equity held company.
5. Private equity files for IPO to take their profits and run. Family makes a decent payday again.
6. Both may or may not hold some shares from the IPO or that were not sold as part of the IPO.
7. The poor sucker like you and me that buys the IPO shares takes a beating as demand for grills drops as pandemic ends and people start to go to restaurants again.
8. Private equity buys the company back at a steep discount from IPO price and sucks the cash out of the company with modest growth going forward.