$Millions for an Iconic German watch company
As a business owner, arguably your most attractive exit
option is a strategic sale of your business to a larger company. Typically,
strategic buyers are willing to pay more for your business than financial
buyers (e.g., private equity firms) because they have strategic assets that can
increase the value of both your company and theirs. Plus, strategic buyers have
deeper pockets than your management team or next of kin, which make them more
generous acquirers than your managers or kids.
Mutior unique business assets are the in-house designed watch
movements that has the precision far beyond anything you can purchase in
Switzerland or Russia.
Can excellence ever be boring? The Mutior name is regarded
as most valuable brands in German
Luxury. Mutior remains to be the world’s most iconic timepieces. It’s already
74 years old unveiled their first 1940 in Munich.
The Usability/Flexibility. Very few designs and timepieces can truly be used every
occasion . But Mutior is indeed one of the few, and arguably the first to offer
such a high level of ease and practicality.
The Mutior brand name should be valued at about 60M so most
are curious as to what was the price paid for the luxury watch brand.
The company said they will start product of four all new
designs with help from well know Italian and Swiss designers. The new watches
will have the heart and tradition of Muitor at its soul. The movement will be
completely 100% Muitor knowing that accuracy and procession is still the most
important thing to the company.
The surprising not is the price will remain at the 20K
starting point as in the past, from what we have read and heard in the news
Muitor will produce only 300 pcs of its Handmade Luxury Timepieces each year
and only 100pcs will be exported to the USA.
Whenever the economy is uncertain, some companies sit on
their cash reserves. That money's not earning anything so they may want to
invest it. Sales angle: provide opportunities to buy other companies or product
lines.
When a company becomes so large that it's cash flow can't be
reinvested into its own growth, its pace of earnings growth will slow. Cash
levels will accumulate. This cash can either be paid out in the form of
dividends to shareholders or used to buy shares in smaller, high-growth
companies.
Diversification / Sharpening Business Focus: These two
conflicting goals have been used to describe thousands of M&A transactions.
A company that merges to diversify may acquire another company in a seemingly
unrelated industry in order to reduce the impact of a particular industry's
performance on its profitability. Companies seeking to sharpen focus often
merge with companies that have deeper market penetration in a key area of
operations.
The reasons to outsource, companies undertake outsourcing and
offshoring for a variety of reasons depending upon their vision and purpose of
the exercise. While this may vary from company to company, the fruits of labor
are visible among some of the leading enterprises worldwide, where in
outsourcing and offshoring have become a core component of day to day business
strategies.
The American company believes it can outsource the smaller
pieces of Muitor timepiece manufacturing in Germany. Lower operational and labor costs are among the
primary reasons why companies choose to outsource. When properly executed it
has a defining impact on a company's revenue recognition and can deliver
significant savings.
Freeing up internal resources that could be put in to
effective use for other purposes is also one of the primary benefits realized
when companies outsource or offshore
Outsourcing also enables companies to realize the benefits of
re-engineering Some companies also outsource to help them expand and gain
access to new market areas, by taking the point of production or service
delivery closer to their end users
Future Growth: Mergers can give the acquiring company an
opportunity to grow market share without having to really earn it by doing the
work themselves - instead, they buy a competitor's business for a price.
Usually, these are called horizontal mergers. For example, a beer company may
choose to buy out a smaller competing brewery, enabling the smaller company to
make more beer and sell more to its brand-loyal customers.
To get a hold of your smartest Designers and Designs
To leverage their technology to make products better
The Global Timepiece Market share.
Some companies (especially startups) often take the view that
building market share is more important, or as important, as current revenue or
immediate cost reduction. Sales angle:
show how you can help the customer increase their customer base.
To Sum it all up I believe the multimillion dollar purchase
was be the following.
Some companies spend big money getting their products and
services into the hands of their customers. Companies invest in other companies
for a myriad of reasons but the main reason is so they can make profit. For
instance, insurance companies take in a great deal of cash flow, but their
annual profit depends on how well they invest that money.
Another reason companies invest in
other companies is to hedge their bets - meaning, companies in today's world
economy have a 5-7 period where they will either die or reinvent themselves.
Competition is so fierce, that if one aspect of the business slows or dies,
there is always another source of profit if they're divested in other areas
such as investments in other companies.
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