Reports that the Concord Music Group is up for sale are true, knowledgeable sources say. But there is one key factor that appears to have been overlooked thus far: management is controlling the company's sale process so far.
Consequently, Concord is being shopped to private-equity firms and not to strategic suitors, according to some strategic sources who have confirmed they haven't been contacted to partake in the auction.
According to sources, the Concord management team believes there is a lot of opportunity to grow the company through acquisition. But it doesn't have the cash to make those plays while it's a part of Village Roadshow Entertainment, which recently underwent a re-financing but needs that funding to fuel its own growth.
The Concord plan is to find a private-equity firm to not only buy the company, but also invest in management's vision by keeping in place the team lead by Concord Music Group president/CEO Glen Barros, sources say.
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