Categories:Private Equity,UK

Private equity interest in luxury brands

It may seem anomalous when consumer spending remains generally depressed, courtesy of macro-economic conditions, that the luxury goods market has remained comparatively resilient. There have, of course, been victims (think Jaeger and Acquascutum), but the sector continues to attract investment, in particular from private equity.

For a start, well managed luxury brands often achieve higher valuation multiples than regular consumer goods companies, given their propensity for greater customer loyalty, so each pound of earnings growth potentially converts into more value for investors when it comes to exit. And with less leverage generally available, the private equity community is having to work its assets harder than ever to create that value.

Those companies with luxury brand appeal can be ripe with value creation prospects. Periods of private (often family) ownership may have constrained exploitation of the key growth opportunities, including those arising from globalisation and digitalisation of sales strategies. Private equity can provide not only the investment needed to take a company from one stage to the next, but also the necessary expertise in overseas expansion and implementation of new routes to market…

If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.

 

Briefings from Taylor Wessing

View more briefings from Taylor Wessing

Analysis from The Lawyer

  • merger deal

    Corporate crunch time: who will triumph at The Lawyer Awards 2014?

    As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014. 

  • singapore orchid

    Singapore: Cash course

    The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world

View more analysis from The Lawyer

Overview

5 New Street Square
London
EC4A 3TW
UK
http://www.taylorwessing.com

Turnover (£m): 228.00
No. of lawyers: 860
Jurisdiction: UK
No. of offices: 4
No. of qualified lawyers: 67 (International 50)

Jobs