Professor Elam

Thursday March 12, 2015

IGNITE purchased Macaroni Grill two years ago for $55 Million.

 Now it is selling the chain for $8 Million, a 85% mark down. 

Macaroni's 150 locations gross about $300 Million a year. Eight Million sounds like a bargain to me. 

As accountants, it is imperative to be able to assess value. Clearly Ignite was unable to do that. I expect the buyers are on to a good deal here.