The Dawn(ay) of a New Day?

Posted by Morgan on 18th Jul 2008

 

\r\n

They say that good entrepreneurs are always looking ahead and predicting the future.

\r\n

 

\r\n

Guy Naggar and Peter Klimt’s Dawnay, Day has been amongst the smartest and most entrepreneurial property investor of the last cycle, as illustrated by the early listings of Dawnay, Day Carpathian and Dawnay, Day Treveria in 2005 to satisfy the new demand Central, Eastern European and German property investments.

\r\n

 

\r\n

Unfortunately, they are also the first high profile casualty of the downturn with administrators having been appointed to various Dawnay, Day businesses. I am sure many will write Dawnay, Day’s obituary claiming the business grew too big and too fast as they ventured into sectors they did not fully understand.

\r\n

 

\r\n

This may be true but the early acceptance of the situation and the appointment of an administration may also be a sign of Naggar and Klimt’s business nouse? Reports suggest they had taken steps to quickly dispose of assets well before BDO were appointed as the administrator by creditors.

\r\n

 

\r\n

Did management realise that in the face of a Force Nine Property Recession they could stand and fight against a rising tide or simply surrender and allow themselves the breathing space to reinvent themselves ahead of the next market recovery?

\r\n

 

\r\n

Business theory states you should never throw good money after bad and you should take hard decisions as soon as it is obvious a venture will fail. Have Naggar and Klimpt made this tough call before most property investors have even realised the full extent of their problems? 

\r\n

 

\r\n

As the Kenny Rogers' sang "You got to know when to hold em, know when to fold em, know when to walk away and know when to run."

\r\n

 

\r\n

What are the chances that despite (or because of) their early exit that Naggar and Klimt will return as  succesfull investors once they spot the dawning of a new cycle?

\r\n

 

\r\n

(PS. I don’t have commas in all the wrong places that is how they write it. )

Contact Us

Ellandi