My Take on the QSC Sale

In 2001, some new friends of mine invited me to go fishing. These were quite new friends as I had just started working for them as their rep. They invited me to go to the company “cabin” in Mammoth Lakes, CA.    

I had to get there late at night. I had a Boy Scouts event with my oldest son that day, so I drove in the dark and arrived around 11 p.m. Barry Andrews and Greg McLagan greeted me with this question: ‘Have you ever had really good tequila? Like really good?’

I was terrified. I was terrified for about five minutes. Then I realized that I had just officially connected with two people who would become my lifelong friends. The tequila helped a bit as well. 

Barry was the CEO and co-founder of QSC, and Greg was in charge of sales. QSC was the largest line I had ever represented. If I recall correctly, they were on track to do $50 million in sales that year. It might have been $80 million—whatever. Keep in mind what just happened this week: This was my biggest line and the largest company I had worked with, and the CEO and my boss were hanging out with me. I asked Barry if it was his house. He said, ‘I wish. It’s the company house.’ He went on to intimate that he couldn’t afford a house like that. I suspect that may have changed a bit. 

This story is not about me being old. I am old now, so I have old relationships with other people who may also be considered old. But this is not about that. This is about a company that was—and still is—like no other I have come across. This is about a company that actually cared about me. Yes, the whole company. They cared about me—all of them. And in return, I cared about their entire company. This is all true. I truly believe that never changed. I believe that, right now, QSC still cares about me, as well as a host of others who contributed to, took part in, and benefited from their success. It’s not like the good old days, but in the wise words of Barry Andrews, ‘The good old days were never really that good.’ I suspect things are pretty good now.

QSC was founded by some of the smartest people I have ever known. They hired the smartest people I have ever known. Sure, they hired some seriously dumb people too—don’t get me wrong. But they also hired the smartest. And we all had fun. We had massive fun. The ‘work hard, play hard’ mentality was in full effect, and we lived it. Ask me over a really good tequila sometime about ‘the fun.’

We also got pissed at each other. We were family. I can remember a few occasions when Barry and I were yelling. For reals. At each other. One time about Cinema products. Another time when they hired my prized employee, Joe Etrick. I was honestly happy for Joe Etrick when he got the job, but I couldn’t resist throwing a fit. We yelled, got pissed, and then went fishing later.    

So that is my brush with greatness. Barry Andrews, CEO of QSC, yelled at me.

Now they have sold the company for what seems like a lot of money. It seems like a lot now, but it also seemed like a lot when Microsoft paid Apple $150 million to keep Windows alive. QSC just sold for 10 times that amount.

Is QSC the next big thing? I was put in a position to place my bet at one time. I was forced to choose between QSC and another major player. I bet on QSC. I have no regrets. I would do it again. I am doing it again, in my current role as Chief Strategy Officer. One of my chief strategies is to keep my wagon hitched to QSC. 

My industry friends are asking me what might change at QSC after the acquisition. QSC has been an agent of change for decades. They thrive on change. What would be tragic is if they DIDN’T change. But I do suspect there will be some things that may present challenges. If I owned a company and suddenly had all this talent at my disposal—all these brilliant engineers and true business ninjas—it would be difficult not to borrow them from time to time. It would be hard to keep my hands off my shiny new toys.

So, ‘Nothing is going to change’ is likely the nonsense we recognize every time we hear it. Something most certainly has already changed. Some of my friends are really rich now. They can afford a house in Mammoth stocked with good tequila.

I expect QSC to continue to innovate, disrupt, and drive our industry to new heights. And I expect them to continue to yell at me from time to time. I certainly plan on yelling at them. Probably as early as this afternoon.    

– John Hood