#Carla elite kurt geiger software

The company is named after its Austrian founder.Īfter a management buyout in 2008, it was sold by Graphite Capital to the U.S.-based brand management company The Jones Group in 2011. The building, originally dating from the 1970s, was remodelled in 2009 by Archer Architects and is finished in a distinctive red, described as Pompean Red. The Kurt Geiger headquarters is located off Britton Street, Clerkenwell, London. Kurt Geiger owns three brands Kurt Geiger London, KG Kurt Geiger and Carvela Kurt Geiger, created by its in-house team. Kurt Geiger has around 70 stores, and approximately 170 concessions within department stores, including Harrods and Selfridges.

#Carla elite kurt geiger software

It is hard to outrun declining growth it is almost impossible to outrun multiple contraction at the levels we will likely see as these PE-owned software companies come to market.Kurt Geiger is a luxury British footwear and accessories brand. It didn’t feel that way for a long time (like, a really long time). What you pay on the way in matters a lot. And what’s fun about this business is that we will all find out. Well, that is the question facing hundreds of funds with portfolio companies in this exact predicament. And I haven’t even included management equity or debt here, both of which will eat at your exit proceeds. But you will still have to 3x revenue during your ownership (not easy) to get a 1.5x return because the multiple contracted on you. Sure, growth could re-ignite you could do some transformative M&A swap out management. And you are likely losing value in the years in between. So, you didn’t create any value between Year 1 and Year 6. If you hold on for six years to let the lower growth rate compound, you are looking at a 1.5x return and a 7% IRR. So what does all this mean? Well, you can see in the spreadsheet linked below. I know, I know, YOUR vertical SaaS company is worth way more than that because it’s special. We can all debate where revenue multiples settle out, but I bet we are not headed back to 2020-2021 valuations in my lifetime, and I believe 4x-8x TTM revenue (most buyers aren’t doing the forward thing in an uncertain macro environment) is a pretty reliable range for good to very good software companies.

As growth slows, your valuation multiple contracts. Your mileage may vary.īut declining revenue growth isn’t your only problem here. Public and private company data supports all this, showing enterprise software growth rates falling 30%-50% over the past 18 months. And in 2023, growth slows some more (it has been a choppy year). That’s a 40% IRR! (Even an art major like me can do that math.) You mark it up to 1.4x to reflect the first year under your ownership. In 2021, the company grows ARR 40% again. Which, at that growth rate, is only 8.5x forward ARR. You paid 12.0x TTM (trailing twelve month) ARR to buy the whole thing. In the fall of 2020, you bought a vertical SaaS company with $10 million in ARR (Annual Recurring Revenue), growing 40% per year. Here is some simple math (and I have included an overly simplified spreadsheet below to illustrate it). Because there are a lot of them sitting in tech buyout / growth equity portfolios right now.