Many DTC brands that set out to disrupt their industry are acquired by the larger companies they hoped to disrupt. Managing Partner Matt Katz was quoted in “Why Acquisitions Lead DTC Exits” in Retail Dive about the benefits of larger companies acquiring DTC brands including new expertise, resources, real estate, talent, and more.

Matt notes the benefits of acquisition for DTC brands stating, “When you’re looking for a steward of the brand, or a partner who can help you get into new markets, new channels of distribution, that’s typically not an IPO. That’s typically a strategic acquisition.”

He continues to explain the numerous benefits for the larger companies that acquire DTC brands, “You’re acquiring a capability that your current team may not have. Maybe a mindset your current team may or may not have. They’re after a new channel of distribution — a capability from a brand house that they did not have. They made a decision that it would be easier and it would be a faster value equation for them to buy and acquire than it would be to build.”

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