Brand Acquisition and Build

 The issue

· Irrespective of the changing dynamics of the route to market the customer will still buy the right brands, properly designed and at the the right price.

· The economics of the retail industry have changed significantly due to online shopping and the corona virus hitting retailers and the brands that are sold through them hard

· As a result there are many brands that are “weighed down” by legacy distribution channels, lack of funding and a clear turnaround strategy. 

The solution

· We value brands on what can be achieved if they were sold through the optimal distribution channel (A) not the one they operate within currently (B). We value the brands based on A and through our other divisions deduct the known cost of getting from B to A.

· We have a stock liquidation arm to reduce working capital and a Lease Liability Transfer division that can guarantee the cost of exiting from property.

· The optimal distribution channel will be a mix of retail, wholesale,licensing,franchise/concession supported by an effective online offering and social/media marketing campaign

· We have existing global wholesale, licensing and concession/franchise arrangements and a design and manufacturing capability through our supply chain and sourcing division.

A simple example. Brand X is under performing due as has no need for physical sites.

Sales 100

COS (50)

Staff (10)

Property Costs (25)

Logistics Costs (10)

EBITDA 5

Similar businesses are being sold on a multiple of 4x EBITDA

Sale Proceeds 4x5=20

Alternative is business liquidation and disposal of brand, customer  lists and IP into a new entity.

Cost to to make staff redundant 5, buy out leases  50, 

Sales 100

COS (50)

Logistics (10)

EBITDA 40

Sale Proceeds 40x5=200 less 50 less 5=135.

For more information contact 

Charlotte Johnson on 02083523884