Companies that know their shit can scale up production without a decrease in quality. Small companies that don't know their shit can often do a half-decent job of hand-fitting/hand-sorting parts to make something that generally works (the uninformed masses usually incorrectly refer to this as "QC" when spouting the usual bullshit on forums), and then offering good customer service to fill any gaps in the manufacturing process that may have allowed defects to reach the customer. Guess which approach is far more common in the firearms industry?
It's that latter group which often suffers from a precipitous drop in quality after a buy-out, because the original owners haven't documented what works and what doesn't, the knowledge isn't passed along to the new owners (often because key individuals leave as a result of the buy-out), and the new owners certainly don't know enough to remedy the issues (or else they just would have started their own company).
Actualy it hardly EVERY works out that way. When most of the brain of the operation leaves, along with the driver of excellence...you will see a drop off. The focus shifts from making perfect guns to making as many as they can to increase revenues/profits.
If it was so easy, the orignional owner would have increased production and increased his revenue and profits. You do this through equipment, labor force, and supporting forces. Buying a bunch of new equipment doesn't mean shit if you don't have the same level of expertise running the machines. You can't just miricle Master level gun builders into existance. Most places it takes YEARS for an already competent smith to apprentice and gain the knowlegde, experince and wisdom to become a great and consistant builder.
So if there is a sudden increase of production, Where is it coming from? Are they hiring new labor (that is almost always underskilled/under experinced) and throwing them to the wolves? Did they hire more machine opperators, QC pros and customer service (who know the products inside and out) to help facilitate this growth?
When someone buys a Surgeon, they expect THE BEST. That is why they are paying $5K for something that other known quanitites sell for $3K. It needs to be perfect. That level of craftsmanship, attention to detail and quality control cannot just be reproduced by hiring more bodies and machines.
QC is the process of checking and ensuring everything is correct, BEFORE it leaves the shipping dock. It is also the process of checking/measuring/testing parts and materials before they enter the production cycle, ensuring they are acceptable. High Quality companies will send back defective OEM parts on the regular for not meeting the specs. They will also shitcan parts/guns that fail to meet their quality specs at the end of assembly. Shitty/mass-produced/soley profit driven(DING) companies will skimp here beacuse A. QC costs money in labor/time and B. It reduces the ammount of product that ships out per week. Before BCM started getting their own stripped uppers machined for them, they would return on avg 60% of their uppers for failing to meet spec. The manufacture is the same one producing your uppers for half the guns out there. Bushmaster or DPMS or RRA doesn't give a fuck if the reciever threads are off center and not concentric. They don't care about rough tool marks or oblong pin holes beacuse it will still fit together into another rifle that they make $30 profit off of after evertything is said and done.
How did Larue's explosion work out for him? Shit, he didn't even chance any of his designs and is still using rail systems and mounts that are fucking 12 year old designs. Price keeps going up, despite capital costs being recouped and hardly any new products released other than guns. Fuck buying barrels, lets make our own, its easy...............................
Same story different day. Nothing that hasn't already happened and been observed hundreds of times across many boutique industries.
If you really want to blow your little mind, take a look at the hi end fashon industry. There is no better example of the watering down of luxury products and using said reputation to market cheap shit to the masses. Jerome and Shequa living Channel and Gucci lifestyles on Wrangler/Levi budgets.