I want to say there has been no movement on Blue Diamond in over a month. That wouldn’t be 100% true but I can this, nothing has been done that is moving me closer to the acquisition and that is depressing, demoralizing, frustrating and in a more appropriate phrase, ‘fucked up!’ Here’s where I am:
The big deal is waiting on estimates for the fuel system replacements. I only had one firm working on providing the estimates, which is my fault. The challenge was getting other firms to either sign the NDA or be responsive to my request. I haven’t been aggressive enough in some cases; in other cases, some companies have been resistant. I don’t know why. I have my theories but no confirmation.
The one firm that is putting costs together is way outta bounds. The guy gave me a quote for one of the smaller stores to replace the fuel systems of $700,000. That’s for one store, $700,000. If that was the average, the costs to replace the fuel systems would be $9.8 million, more than the stores are worth. That doesn’t’ include the costs of the stores, the store demos, and rebuilds.
The area where I have made some progress is doing due diligence on the system infra structure. Systems are a significant component of our ability to manage the company post-acquisition. Remember, we’re not buying a going concern company. We’re buying individual stores and putting them together under one entity. The systems will be the glue that binds them together and gives us the data needed to drive efficiency. I think I have decided on the primary financial management system as well as the point of sale system. There are some other system components to evaluate which I’m working one. I also have t get the cost and implementation plan together. That is progress.
The other thing I have done is written the job descriptions and posted them on the preliminary website for Blue Diamond. I haven’t gotten any candidates yet but at least the job descriptions are posted. At some point I will trigger an all-out search for people. Getting closer to the acquisition of the stores is, must be the highest priority.
There’s something I need to say regarding other things happening but I need to do that in another post.