#investment-talk
Discuss the latest market trends and share investment strategies with other members of the community. Whether you’re a seasoned investor or just getting started, this channel is a great way to learn from others.
Thread
Does anyone have any references/proxies/data for how to value a DTC apparel brand in this environment? I have plenty of data for comparable DTC brands from 2021 and before, but nothing past 2022
Look at public comps. Allbirds/On/Victoria Secret/Lulu
Yup, I checked public but just wondering if private (and specifically early stage) is any different
@Danny C Pretty darn hard to know the rev. multiples of private deals because usually the valuation of the deal isn’t shared, and generally not the revenue either.
Allbirds is 0.7x as a rev. multiple at the moment. On Running is 6.7… I guess the main takeaway there is keep growing, don’t shrink revenue and be cool 😉. Saw an apparel deal in 2023 for a Series A at ~3.5x for a growing apparel brand that also has a “cool” factor to it. Take from that what you will
Thanks @Joel Jackson ! This is really helpful!
could use this as a starting point, and then back into what you think is a fair valuation given differences in margin & growth profile:
@Brett Weisberg this is a great resource, thanks so much!
@Danny C I sold my company in 2022 and have a decent grasp on multiples and also different ways to structure the deal. No matter what I say, the market will dictate. But, how long you have been in business, your growth or lack there of and of course ebitda are biggest factors