Every now and then it’s great to spoil yourself with that luxury product that you have had your eye on, and surprisingly many well-loved high-end brands are owned or being purchased by companies that own a plethora of other brands. Recently, Michael Kors purchased Italian fashion brand Versace for more than AU $2.75 billion and last year it purchased luxury shoemaker Jimmy Choo for AU $1.86 billion.
Purchasing an existing business and brand has an advantage over establishing your own brand or business in that the difficult steps in establishing the brand and its good will and processes has already been completed for you. It can be a great way to increase your existing portfolio and expand into a different market.
There are many considerations when it comes to deciding to purchase a business. For example, whether to purchase a business though an asset sale or as a company which can impact the steps that will need to be taken to conduct the purchase. We have discussed the difference between these two processes in a previous article.