Insight

Why Acquisitions Lead DTC Exits

< BACK TO INSIGHTS

Insight

Why Acquisitions Lead DTC Exits

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.”

Read the full article here.

Authors

Related Services

Recommended Insights

Insight

Who International Retailers Hire to Crack the US Market

Matt Katz shares strategies for retailers to consider when entering a new market in this Business of Fashion article. 

Learn More

Insight

Three Important Operational Priorities for Life Insurance in 2024

In life insurance and annuities, the promise has always been unwavering stability and resilience. Insurance companies have adapted to the times by being measured and purposeful, living their commitment to providing long-term security. The last decade challenged this paradigm, having introduced a relentless wave of innovation, including contactless underwriting, consumer demand for digital-centric interactions, the office impact of the COVID-19 pandemic, the entry of private equity, and rapid fluctuations in interest rates, with the looming threat of declining asset values already requiring another round of new investment strategies, product revisions, and balance sheet optimizations. 

Learn More

Insight

A Painful Year Looms for Issuers of Middle-Market Consumer Credit Cards

Pierre Buhler was featured in this American Banker article outlining strategies for credit card issuers operating in an increasingly complex environment. 

Learn More

Stay up-to-date with our latest news

Name(Required)