Club mergers and acquisitions

[jdean208]

The business side of our little hobby.

http://www.streetinsider.com/Mergers...s/5353276.html

That is quite a pile of $1 bills.

[pyramider]

Looks like VCG got the best of the merger... East St Louis??

[Fast Gunn]

Interesting.

Thanks for posting that link, jdean.

I wonder what this will mean for the number of dancers at these clubs?

Mergers generally lead to a reduction in staff.

[jdean208]

I think they are counting on economies of scale and reduction in management costs. May not affect the dancers much. At least I hope not.

And you are very welcome.

[atlcomedy]

Originally Posted by pyramider

Looks like VCG got the best of the merger... East St Louis??

Without knowing the operating results for the clubs, that seems a rush judgement. BTW 3 or 4 of the clubs are in the St Louis Metro on the Illinois side of the border

Originally Posted by Fast Gunn

Interesting.

Thanks for posting that link, jdean.

I wonder what this will mean for the number of dancers at these clubs?

Mergers generally lead to a reduction in staff.

Originally Posted by jdean208

I think they are counting on economies of scale and reduction in management costs. May not affect the dancers much. At least I hope not.

And you are very welcome.

Yeah savings should come in the form of corporate/management and promotion synergies (e.g. you double your clout with feature acts).

As for the dancers, they are "independent contractors"

[pyramider]

Have you been to East St Louis? If you have been you will know what I am referring to. Its an economic black hole. The only reason a club could do any business there is because its across the river from Missouri where SOBs are very unTexas-like.

[atlcomedy]

Originally Posted by pyramider

Have you been to East St Louis? If you have been you will know what I am referring to. Its an economic black hole. The only reason a club could do any business there is because its across the river from Missouri where SOBs are very unTexas-like.

Yep...spent a lot of $$$$ there too...

& FWIW, always felt secure...easy on/off interstate...large, lighted, monitored parking lot...parked my Porsche there many a time....

I'm not sure I get the context of "unTexas-like" but I'm guessing it has something to do with the very restrictive environment across the River for Adult Businesses....if that is the case...yes that is why it works...ESTL maybe an armpit but friendly to Adult Businesses....