Kuiu sold?

[ODB]

Unlike many I have nothing against PEs broadly speaking and they drive lots of business growth. Sometimes the focus is cutting cost, may times its driving rapid growth. In some types of companies rapid growth is sufficient and having a PE involved can be a real blessing for both the company and customer.

That being said there are realities of the ROI they are looking for and timelines involved. If you need to 3x ebitda in 5 years there are only so many ways to do that with a niche hunting brand and simply increasing sales on the existing niche product can likely only do it for one exit cycle as most.

So how do you keep doing it, combo of cost cutting and expansion into lifestyle stuff to increase the TAM. I kind of doubt we see a change fast, but also that nothing much has changed a decade from now.

I’ve seen two different PE firms destroy the same company twice…neither of them, in 10 years, could return revenues to the 100mil the apparent redneck, non-business-types generated when they ran the company because they believed in the product and its customers.

But I digress…

 

[Speaks]

I’ve seen two different PE firms destroy the same company twice…neither of them, in 10 years, could return revenues to the 100mil the apparent redneck, non-business-types generated when they ran the company because they believed in the product and its customers.

But I digress…

Dont know that we disagree on anything, as I said it can go either way with PEs either assisting on accelerating growth, or diluting value chasing margin. I cant envision how it long term goes the good way with this type of company even if it starts out that way.

I am sure you have seen what you saw, I have too, I have also seen the opposite. Totally depends on the PE and the company and the deal they make. In this case I would not be optimistic.

 

[Dirtbag]

Bummer, as stated these acquisitions never end well for the consumer or the brand.

But with one downfall it typically opens the door for the next guy…

 

[NMNomad]

I saw that. I've been happy with the Kuiu gear I have purchased so far. I suppose now is the time to get the gear you know you like, in case the quality goes downhill.

 

[TheTone]

As long as prices and quality stay the same I’ll still be a customer

 

[Poser]

I agree with the sentiment that in terms of a PE acquisition, this *appears* to be best case scenario. That being said, I don’t foresee the ROI coming from more aggressive marketing as KUIU is already a marketing machine, probably with the single highest marketing budget in the entire hunting industry. Presumably with the long term value to customer acquisition cost ratio to back that up. So, if the goal in fact into increase revenue, KUIU will either have to continue to aggressively grow and I am unsure that will happen selling technical hunting apparel without raising prices, cutting costs or a bit of both. I would expect more lifestyle branded apparel and maybe an expansion into generalist outdoor wear. Scaled growth will have to happen in some area. It is interesting to think of a hunting brand as essentially following The North Face model of going mainstream.