Patek Philippe for sale?

[BT1985]

Originally Posted by np2016

Thierry Stern should just buy out his wife's stake if she is going to sell it. Then he can keep the entire company to himself.

I doubt he can. Most of his net worth is tied up in the company which is why divorce can often force a liquidity event. He could take on debt or PE as mentioned earlier.


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[tom2517]

Originally Posted by BT1985

I doubt he can. Most of his net worth is tied up in the company which is why divorce can often force a liquidity event. He could take on debt or PE as mentioned earlier.


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Whatever reason the Stern the family is considering selling Patek (if at all) aside, but lets assume it is true due to divorce, and I am not familiar with Swiss laws, but I thought TS met his wife while she was working at Patek, so how much stake could she have claimed that it would force TS sell Patek?

[BT1985]

Originally Posted by tom2517

Whatever reason the Stern the family is considering selling Patek (if at all) aside, but lets assume it is true due to divorce, and I am not familiar with Swiss laws, but I thought TS met his wife while she was working at Patek, so how much stake could she have claimed that it would force TS sell Patek?

I am not saying it would force him to sell. I am just saying he most likely can’t afford to buy her ownership stake outright without taking on outside money since a great deal of his net worth is tied up in his ownership stake.


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[tom2517]

Originally Posted by BT1985

I am not saying it would force him to sell. I am just saying he most likely can’t afford to buy her ownership stake outright without taking on outside money since a great deal of his net worth is tied up in his ownership stake.


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Yeah but that's what I meant? What kind of ownership could she have gotten that TS could't afford just pay her off? It's not like she started Patek with TS, she married into it. I have a friend who just gotten a divorce, he is worth around 500M but just need to pay the wife 3M.

So that's why I am wondering how the Swiss law works?

[MinhPham]

What if Chinese people buy PP THEN doing mass production of Nautilus?
☠️

[Navarino]

I don't know the particulars of how a divorce would play out under Swiss law. For the sake argument and simplicity, say she took half of his economic ownership. Firstly, there may be measures in place (at the parent Patek company) that could stop her from forcing a sale of the company. There also may be measures in place where she can be stopped from selling her interest of the company (e.g., cannot be done without unanimous consent), measures where others have the right to purchase her interest before anyone else (ROFO or ROFR provisions), etc.

For the sake of argument, say she could force a sale. I've actually worked on a few transactions like this. Albeit, they have all been on a smaller scale (think closer to the $500M-$1B valuation range). Seen a few different situations - everything from an outright sale to a partnership with founder/owner. The latter is more interesting. In short, he probably can't take her out alone by lining up the necessary financing. He could potentially find a financial partner who could pony up the cash to buy out the selling interest. The make-up of that cash is a mix of cash from the financial partner and financing from a bank. Different circumstances and motivation, but similar mechanics to when the Nordstrom family was considering taking the company private last year (they contribute their significant ownership stake and PE buyer tenders the remaining shares with cash coming from themselves and debt financing).

[superdog]

I hope you guys stop buying Pateks if this happens.

Maybe then I can get a 5164.

[tom2517]

Originally Posted by superdog

I hope you guys stop buying Pateks if this happens.

Maybe then I can get a 5164.

Based on the responses here, you should pray the rumor is true.

[APAP]

Originally Posted by Carry The Interest

I don't know the particulars of how a divorce would play out under Swiss law. For the sake argument and simplicity, say she took half of his economic ownership. Firstly, there may be measures in place (at the parent Patek company) that could stop her from forcing a sale of the company. There also may be measures in place where she can be stopped from selling her interest of the company (e.g., cannot be done without unanimous consent), measures where others have the right to purchase her interest before anyone else (ROFO or ROFR provisions), etc.

For the sake of argument, say she could force a sale. I've actually worked on a few transactions like this. Albeit, they have all been on a smaller scale (think closer to the $500M-$1B valuation range). Seen a few different situations - everything from an outright sale to a partnership with founder/owner. The latter is more interesting. In short, he probably can't take her out alone by lining up the necessary financing. He could potentially find a financial partner who could pony up the cash to buy out the selling interest. The make-up of that cash is a mix of cash from the financial partner and financing from a bank. Different circumstances and motivation, but similar mechanics to when the Nordstrom family was considering taking the company private last year (they contribute their significant ownership stake and PE buyer tenders the remaining shares with cash coming from themselves and debt financing).

Where is Harvey when you need him

[tom2517]

Originally Posted by APAP

Where is Harvey when you need him

He probably worked on my friend's case lol.

[APAP]

She sure for the short end of that stick

[AAP8]

Originally Posted by APAP

She sure for the short end of that stick

Really? She married a man whose parents had a business, then worked at the business - sure she deserves something - but its not the short end of any stick. In theory Jeff Bezo's wife has done more his success that Stern's wife, since Stern didn't really create anything, just runs it.

[tom2517]

Originally Posted by AAP8

Really? She married a man whose parents had a business, then worked at the business - sure she deserves something - but its not the short end of any stick. In theory Jeff Bezo's wife has done more his success that Stern's wife, since Stern didn't really create anything, just runs it.

Actually I believe she was an employee of Patek, that’s how TS met her.

Bezo’s case is different because she and Jeff started the business.

And finally APAP was referring to my post, where I have a friend who is worth around 500M but only had to pay 3M for the divorce. She married into money, so in Taiwan she isn’t entitled to much. That’s why APAP said she got the short end of the stick.

[AAP8]

Originally Posted by tom2517

Actually I believe she was an employee of Patek, that’s how TS met her.

Bezo’s case is different because she and Jeff started the business.

And finally APAP was referring to my post, where I have a friend who is worth around 500M but only had to pay 3M for the divorce. She married into money, so in Taiwan she isn’t entitled to much. That’s why APAP said she got the short end of the stick.

Ahh - missed that context - thanks - and true and TS came from money, so if he entered into marriage without some protections - this would be an interesting way for Patek's long history to end as a true independent. Granted a sale to PE would allow that to continue.

[korneevy]

Somewhere in a quiet mansion in Cologny, 5 mins drive from Rue du Rhone, 41 in Geneva, Thierry and Sandrine Stern are having a chuckle reading this, including a detailed discussion on their divorce, Swiss civil law and provisions to be put in place so an adequately cashed up Private Equity can be engaged to buy out her share of the business. That's probably a highlight of their week if you'd think of it.