In this conversation, Mehtab and Drew discuss various aspects of growth equity, investment opportunities, and the dynamics of venture capital in the consumer brand space. They explore the challenges and considerations in evaluating deals, the importance of discipline in investment decisions, and the contrasting approaches of bootstrapping versus raising venture capital. The discussion also touches on the role of top-tier funds in shaping investment outcomes and the capital-intensive nature of retail businesses. In this conversation, Mehtab and Drew discuss various aspects of business operations, focusing on compensation alignment, investment evaluations, intellectual property risks, brand value, and the volatility of consumer markets. They explore the importance of understanding different consumer categories, the impact of knockoffs on brand integrity, and the challenges of building brands in public. The discussion emphasizes the need for innovative solutions to enhance profitability and the significance of staying informed across various sectors.

Chapters

00:00 Introduction

08:11 Discipline in Investment Decisions

15:02 Raising Capital for Consumer Brands

24:29 Conclusion and Reflections

30:16 The Importance of Brand Value

36:50 Innovative Solutions for Brand Profitability

42:40 The Impact of Knockoffs on Brand Integrity

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Numeral

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@F_Operators

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9Operators: 9 Figure Brand Operators. / @operators9 MOperators: Marketing Operators. / @marketingoperators

In this incredible episode, Drew Fallon and Mehtab delve into the latest filings of Gymshark, a prominent player in the retail market. They discuss the brand's evolution, financial performance, and the challenges it faces in a competitive landscape. The conversation highlights the impact of macro trends and the rising costs of influencer marketing, as well as the implications for Gymshark's profitability and growth trajectory. In this conversation, Mehtab and Drew discuss various aspects of marketing strategies, financial dynamics, and strategic management, particularly focusing on Gymshark's performance and challenges. Plus extra bonus topics like how to de risk your inventory purchases and much more.

Fondue

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Numeral

Sales tax on autopilot.

Spend less than five minutes per month on sales tax compliance.

https://www.numeralhq.com/

Iris

https://www.irisfinance.co/

Fulfil

https://www.fulfil.io/

Follow the show on X: @F_Operators

Check out our other shows: 9Operators: 9 Figure Brand Operators. / @operators9

MOperators: Marketing Operators. / @marketingoperators

00:00 Introduction and Overview of the Podcast03:09 Health and Wellness Trends05:59 The Gummy Supplement Phenomenon08:59 Beauty Industry Struggles11:53 Business Models in Health and Wellness14:58 The Rise of Protein and Creatine17:58 Consumer Trends and Market Evolution21:06 Marketing Challenges in Supplements24:46 The Evolution of the Cannabis Market28:10 Navigating the Challenges of Brand Building32:01 Market Dynamics and Consumer Behavior36:06 Comparative Market Growth: THC Beverages and Beyond40:01 The Future of Cannabis Branding and Regulation44:31 Understanding Revenue Ranges and the Valley of Death47:21 Navigating Profitability in Different Categories51:52 Understanding Cram Downs and Equity Dynamics56:22 The Intersection of Marketing and Finance01:00:10 Effective Financial Reporting and Meeting Cadence01:08:21 Mastering 13-Week Cash Flow ForecastsSummaryIn this episode, hosts Mehtab and Drew discuss various trends in the health and wellness sector, including the rise of gummy supplements and the contrasting struggles of the beauty industry. They explore the business models behind health and wellness brands, the popularity of protein and creatine, and the evolution of health trends over the years. The conversation also delves into the THC beverage market, drawing insights from the Canadian market and making predictions about future growth. In this conversation, Mehtab and Drew discuss the complexities of the cannabis beverage market, the explosive growth of various beverage categories, and the challenges of scaling revenue in consumer products. They delve into the importance of financial reporting, meeting cadence, and the necessity of maintaining a 13-week cash flow forecast to ensure business sustainability and growth.Premier Partner:FondueCheck it out at ⁠https://www.getfondue.com⁠/Mention this podcast when you talk to the team, and get VIP treatment NumeralSales tax on autopilot.Spend less than five minutes per month on sales tax compliance.https://www.numeralhq.com/Irishttps://www.irisfinance.co/Fulfilhttps://www.fulfil.io/Follow the show on X: @F_OperatorsCheck out our other shows: 9Operators: 9 Figure Brand Operators. / @operators9 MOperators: Marketing Operators. / @marketingoperators

00:00 Introduction to Turnarounds

02:48 Understanding Turnarounds: Definitions and Types

05:49 The Case Study of Cody: A Turnaround Story

09:14 Balance Sheet vs. Income Statement Turnarounds

12:03 Liquidity and Its Impact on Turnarounds

22:22 Financial Overview and Turnaround Strategies

27:50 Cash Flow Challenges and Inventory Management

30:34 Optimizing Cash Conversion Cycle

36:34 The Risks of Negative Cash Conversion Cycle

43:14 Market Sentiment and Future Outlook

45:30 Navigating Liquidity in Private Equity Investments

47:56 Strategizing Cash Management and Investment Timing

49:58 Understanding Financial Levers: Revenue, COGS, and Marketing

59:01 Optimizing Operational Expenses and Debt Management

In this episode, Drew and Mehtab delve into the complexities of business turnarounds, exploring the definitions, types, and real-world applications through the case study of Coty, a beauty conglomerate. They discuss the differences between balance sheet and income statement turnarounds, the importance of liquidity, and the challenges faced by companies in distress. The conversation highlights the strategic approaches needed to navigate turnarounds successfully, emphasizing the parallels with startups and the critical role of financial management. They analyze the company's revenue growth, cash flow challenges, and the importance of optimizing the cash conversion cycle. The discussion also touches on the risks associated with negative cash conversion cycles and the overall market sentiment towards the company. The conversation emphasizes the need for businesses to focus on cash flow management and the implications of financial metrics on operational decisions. Mehtab and Drew discuss the intricacies of managing liquidity in private equity investments, emphasizing the importance of strategic cash management and investment timing. They delve into the various financial levers available to businesses, including revenue optimization, cost of goods sold (COGS), and marketing spend, while also addressing the implications of operational expenses and debt management in the current economic climate. The conversation highlights the need for careful planning and execution in financial strategies to navigate challenges effectively.

Premier Partner:FondueCheck it out at ⁠https://www.getfondue.com⁠/Mention this podcast when you talk to the team, and get VIP treatment NumeralSales tax on autopilot.Spend less than five minutes per month on sales tax compliance.https://www.numeralhq.com/Irishttps://www.irisfinance.co/Fulfilhttps://www.fulfil.io/Follow the show on X: @F_Operators

00:00 Navigating Tariffs and Their Impact

20:31 M&A Trends in Consumer Brands

32:17 State of Minority Equity Capital Markets

35:03 Year-Over-Year Market Activity Insights

36:46 Understanding VC Support for Business Models

43:31 Impact of Public Market Trends on Minority Equity

47:25 Valuation Expectations for Growing Brands

54:46 Exploring Roll-Up Strategies in Jewelry Investment

In this episode of Finance Operators, the hosts discuss the current landscape of tariffs and their implications for businesses, particularly focusing on how to effectively respond to these economic challenges. They delve into the importance of understanding unit economics and the impact of operating expenses on profitability. The conversation then shifts to recent trends in mergers and acquisitions within the consumer goods sector, highlighting notable deals and the influence of social media on brand success. The hosts emphasize the need for businesses to adapt and strategize in uncertain economic times, while also exploring the role of influencers in brand marketing. In this conversation, the speakers delve into the current state of minority equity capital markets, discussing the significant cooling of venture capital activity compared to previous years. They analyze year-over-year market trends, the impact of public market fluctuations, and the evolving expectations for business valuations. The discussion also covers the challenges faced by consumer goods brands in securing funding and the strategic advantages of roll-up investment strategies in the jewelry sector. Overall, the conversation provides valuable insights into the complexities of the investment landscape and the shifting dynamics within venture capital.

Premier Partner:

Fondue

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Numeral

Sales tax on autopilot.

Spend less than five minutes per month on sales tax compliance.

https://www.numeralhq.com/

Iris

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Fulfil

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Follow the show on X: @F_Operators

00:00Understanding the New Tariffs03:20Impact on Supply Chains and Manufacturing04:55Gross Margins and Industry Insights08:35Section 321 and Its Implications10:15Pricing Strategies to Combat Tariffs18:12Revenue Levers and Business Strategies26:36Optimizing Packaging for Cost Savings28:35The Role of Consulting in Cost Efficiency29:35Understanding M&A in the Beverage Industry31:39Crowdfunding: Risks and Realities32:34Navigating Going Concern in Crowdfunding35:51Finding Soft Landings in Distressed Brands39:20The Impact of Public Markets on Private Deals41:00Sales Tax Automation and Its Benefits44:00Thrasio and the E-commerce Aggregator Model48:22Investment Insights and Responsibility49:49The Fallout of Misleading Investments51:38The Role of Greed in Investment Decisions52:32Challenges in E-commerce and Amazon's Profitability55:55The Impact of Interest Rates on Business Models57:56Operational Efficiency and ERP Solutions01:00:06The Future of Aggregators and Brand ValuationIn this conversation, Mehtab and Drew discuss the recent tariffs that have come into effect, their implications on supply chains, manufacturing, and gross margins across various industries. They delve into the methodology behind the tariffs, the impact of Section 321, and explore pricing strategies that businesses can adopt to combat the effects of these tariffs. The discussion also highlights the current state of consumer confidence and its influence on business operations, emphasizing the importance of understanding gross margins and revenue levers in navigating the economic landscape. In this conversation, Drew and Mehtab discuss various strategies for optimizing costs in e-commerce, particularly focusing on packaging and consulting. They delve into the complexities of mergers and acquisitions in the beverage industry, the pitfalls of crowdfunding, and the importance of maintaining relationships for potential buyouts. The discussion also touches on the impact of public market trends on private deals and the benefits of sales tax automation. Finally, they analyze the Thrasio model and its implications for the e-commerce aggregator landscape. In this conversation, Drew and Mehtab delve into the complexities of investment strategies, particularly in the e-commerce sector, focusing on the implications of misleading investments, the role of greed, and the challenges posed by rising interest rates. They discuss the operational inefficiencies in businesses and the future of aggregators in the market, emphasizing the need for responsible investment practices and the impact of external economic factors on profitability.Premier Partner:FondueCheck it out at ⁠https://www.getfondue.com⁠/Mention this podcast when you talk to the team, and get VIP treatment NumeralSales tax on autopilot.Spend less than five minutes per month on sales tax compliance.https://www.numeralhq.com/Irishttps://www.irisfinance.co/Fulfilhttps://www.fulfil.io/Follow the show on X: @F_Operators

Coming up in this episode of FOPS, Drew and Mehtab discuss the recent viral moment surrounding a water company and its implications for brand marketing. They delve into the rise and fall of a bracelet brand, exploring its acquisition and the challenges it faced post-acquisition, particularly in light of changing market conditions and the impact of iOS updates on customer acquisition costs. The episode also touches on strategies for navigating tariffs and managing costs in the current economic climate, providing actionable insights for business owners. We conclude delving into the rise and fall of a biotech company that recently filed for Chapter 11 bankruptcy. The discussion covers the company's innovative beginnings, its significant fundraising efforts, and the impact of a major data breach on its reputation and revenue.00:00Introduction and Context of Saratoga Water08:31The Rise and Fall of Pure Vita25:30Navigating Tariffs and Cost Management26:57Navigating Economic Uncertainty29:04Innovative Cost Reduction Strategies31:05The Importance of In-Person Relationships35:54Leveraging Supplier Relationships for Growth40:03Maximizing Sourcing Efficiency43:55Forecasting Demand and Building Partnerships51:12Creating Fair Contracts for Suppliers54:40The Rise and Fall of 23andMe01:01:52Bankruptcy and Data Concerns01:07:18Trust and Its ConsequencesPremier Partner:FondueCheck it out at ⁠www.getfondue.com⁠. Mention this podcast when you talk to the team, and get VIP treatment Irishttps://www.irisfinance.co/Fulfilhttps://www.fulfil.io/Follow the show on X: @F_Operators

Coming up in this weeks episode, the hosts discuss the current state of the public market, focusing on recent earnings reports and the struggles of consumer brands like Allbirds and Solo Stove. They analyze the implications of macroeconomic factors on consumer behavior and the challenges faced by companies that went public during a market peak. The conversation delves into the financial health of these brands, their growth trajectories, and the potential for acquisitions in a tough economic climate. The conversation delves into the financial performance and growth dynamics of consumer brands, particularly focusing on the challenges faced by holdco models, the implications of debt and lender relationships, and the strategic considerations in private equity and growth equity. The speakers analyze the financial metrics of specific companies, discuss the viability of the holdco model, and explore the nuances of selling to private equity versus strategic buyers, highlighting the importance of understanding valuation and deal structures.00:00Market Overview and Earnings Insights09:43The Rise and Fall of Allbirds27:14Solo Stove and Brand Acquisitions32:24Financial Performance and Growth Analysis35:17Challenges of the Holdco Model39:51Debt and Lender Dynamics44:45Private Equity Insights54:44Strategic Acquisitions and Their Value58:48Growth Equity and Its ImplicationsPremier Partner:FondueCheck it out at ⁠www.getfondue.com⁠. Mention this podcast when you talk to the team, and get VIP treatment Irishttps://www.irisfinance.co/Fulfilhttps://www.fulfil.io/Follow the show on X: @F_Operators

Chapters

00:00 Introduction to Finance Operator and Guests

01:01 M&A Landscape Overview

02:24 Current Trends in M&A Activity

03:58 Understanding Valuations and Adjusted EBITDA

08:38 M&A Structures and Seller Notes

11:42 Negotiating Offers and Deferred Compensation

14:55 Implications of M&A for Smaller Brands

19:38 Case Study: Olaplex's Rise and Fall

25:28 Competitive Pressures in Consumer Products

27:58 Maintaining Gross Margins and Promotions

32:05 Market Trends and Consumer Behavior

34:52 Evaluating Business Sustainability

38:05 The Success of Hims: A Case Study

41:57 Understanding Subscription Models

45:08 Consumer Loyalty and Brand Switching

48:59 The Role of Word of Mouth in Marketing

51:57 Navigating Lending and Financial Agreements

Episode One:

Coming up nn this episode of the Finance Operators, Drew Fallon and Mehtab discuss the current landscape of mergers and acquisitions in the consumer goods sector, particularly focusing on recent high-profile deals and the implications for smaller brands. They explore the complexities of valuations, the importance of adjusted EBITDA, and the structure of M&A deals, including deferred compensation. The conversation also delves into the case study of Olaplex, examining its rapid rise and subsequent decline due to competitive pressures and market dynamics. The hosts emphasize the need for brands to maintain healthy gross margins and adapt to changing consumer preferences. In this conversation, the speakers delve into various aspects of market trends, consumer behavior, and the sustainability of businesses in the current economic climate. They analyze specific case studies, such as Hims, to illustrate successful business models and the importance of understanding subscription dynamics.

Premier Partner:

Fondue