M&A and investment
Velantis Group, a US apparel multinational, is evaluating an acquisition opportunity in fashion retail.
← Back to the case library · How M&A cases run
Our client is Velantis Group, a US multinational apparel company with $25b revenue. The company owns some of the best-known mid-market brands. It sells 70% of its products through its network of corporate-owned stores, and 30% through multi-brand retail chains.
Velantis Group operates a unique business model: instead of committing a large percentage of production for the next fashion season, it commits a small amount and uses customer feedback and an efficient production network to replenish stores with new products weekly. New styles take as little as 15 days to go from design to production.
As part of its growth strategy, Velantis Group is considering the acquisition of LaMode, the leading independent online retailer of luxury brands, which accounts for 3% of all online apparel sales in North America. LaMode's business model involves curating products from the best brands to present a unique collection of over 30,000 items. LaMode has recently launched its own fashion brand, which already accounts for 5% of its revenue.
The CEO of Velantis Group has asked us: Should they acquire LaMode?
Structuring Numeracy Judgement Creativity SynthesisCase Ace opens the case, poses the questions one at a time, reveals exhibits at the right moments and scores you against the model answer. Included in the MBB bundle — £40 for everything.
or get access to everything →