Quote:
Originally Posted by GTRMagic
Story Here
The story talks about an equity position...
The odd part is the article talks to selling a slice of that business in order to invest in more engineering capability.
Surely that is an operating cost, needing to be funded the next year too... or is the plan to keep selling slices, to facilitate a complete exit
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Article doesn't say anywhere that the team is for sale, so I have no idea why this thread has the title it does?
Investing in more engineering capability may be more of a capital cost - could be physical machinery, software, hardware, test rigs, simulators etc. Engineering capability is more than just employing more (or more expensive) engineers - which would be a recurring cost.
Makes sense for WR to bring in some investment, widen the knowledge base and share some risk/reward with others. It seems to have worked OK for 888, DJR and Prodrive as examples.