&Nbsp, The Fashion Industry That Is Popular In Mergers And Acquisitions, Is It For Sale Or Not?

The fashion industry has been booming for many years before the economic crisis. Due to the revival of the luxury sector, the expected price is ideal and the euro is weakening.

Catherine Malandrino is said to be negotiating with Kellwood Co. about the acquisition.

"More and more mergers and acquisitions are taking place now, and many companies like to adopt this approach to achieve their own further development," said Paul Altman, managing director of Sage Group.

When these mergers and acquisitions brands profit from the financing of large companies, many companies hesitate to sell or not.

Industry analysts analyze the reasons why these companies decide to sell mainly three: companies want to set up retail stores; they want to expand their products or want to develop overseas markets.

These three reasons require the company to have large amounts of capital and manpower. If the acquired company has strong financial strength, it can help these brands invest in marketing and advertising.

On the other hand, those acquired companies may lose their ownership or even lose all their management rights.

Most brands such as Nanette Lepore, Milly and Tibi, which are run by husband and wife, choose to remain independent. In their view, only in this way can they freely develop their brands without interference from other investors.

AmySmilovic, the founder and designer of Tibi, said: "we have received many investors' intention to invest, but the problem is that although a large amount of money has been obtained from the sale of the brand, we have to repay the business to investors for a long time. This makes me feel that I am not always free. I still feel that there is no reason to sell my company if the company continues to make profits, the business is in good condition and the employees are satisfied with the salary."

Nanette Lepore also received an investor's investment intention a year ago, but after a period of discussion, he finally rejected the investment intention.

Mr. CEORobertSavage said, "we are all close to signing the agreement, but I am glad that no deal has been reached. So far, the company is still 100% of me. This is a good situation. I think it is not a good thing to grow slowly. And the number of retail outlets owned by the brand is also very good. We do not want to expand too much. The present situation is very good."

Private brand Milly has been established for 10 years, and it does not seek any form of acquisition and merger at present.

Mr. AndrewOshrin, President, said: "when we first started the brand in 2000, the operation of the company was very satisfactory. In the past few years, we were all in break even, and the next few years began to make profits.

As a private enterprise, we can make long-term plans for the brand rather than just seeking short-term profits like investors. "

Milly brand also joined the brand series of children's wear, and the business condition was very good. In 2008, the wholesale profit of the brand was $4600-4700. This year, the brand opened its first flagship store on MadisonAvenue.

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And luxury brands like Rebecca Taylor, Adam, Vince are also very satisfied with the decision of the sale company, CEO Beth Bugdaycay of Rebecca Taylor said: "joining a large group allows us to share more resources, such as manpower, accounting, law, IT, customer service and so on, and the efficiency of the company is also greatly improved. At the same time, we can increase product categories and speed up the process of opening retail stores."

Rebecca Taylor brand has opened many new stores and is expected to open 5-8 new stores this year.

Since the sale of Vince fashion women's clothing brand, sales have increased by four times to 200 million dollars.

However, not all sales were ideal. Juicy Couture was sold to Liz Claiborne in 2003. However, due to the differences in the management concepts between the two companies, the founder and designer of Juicy Couture finally left the brand.

Therefore, selling or not selling should be considered by the company after careful consideration. According to its own circumstances, the mode suitable for a company may not be applicable to another company.