During 1920, the Dodge Brothers company lost its founding fathers. John Dodge died in January, and his younger brother Horace succumbed the following December. A New York investment banking firm paid the brothers’ widows, in a single cash payment, $146 million for the Dodge Brothers firm.
Within three years, the bankers initiated negotiations, and on May 28, 1928, Walter P. Chrysler purchased Dodge Brothers, Inc. for $170 million, making it, at the time, the largest business transaction in history.
https://reedbrothersdodgehistory.wordpress.com/2018/05/28/chrysler-buys-dodge/
Within three years, the bankers initiated negotiations, and on May 28, 1928, Walter P. Chrysler purchased Dodge Brothers, Inc. for $170 million, making it, at the time, the largest business transaction in history.
https://reedbrothersdodgehistory.wordpress.com/2018/05/28/chrysler-buys-dodge/
Wow, the bankers settled for 17% on their money for 7 years. I guess there were profits from those years too.
ReplyDeleteBruce, the Dodge brothers' widows didn't actually sell the company to the bankers until 1925, so they only held it for 3 years, not 7.
ReplyDeleteIf I remember correctly, Chrysler pulled off a coup with the purchase of Dodge. Dodge was comparable in size to Chrysler, if not larger. If the bankers had been interested in running a car company and not just flipping it for profit, they should've been able to execute a merger with Chrysler or hold out for more money.