How Thorne Sold for $3.8B in 3 Years: Case Study
I help entrepreneurs build brands to seven figures and then position them for a multi-million dollar payday. The playbook we use to do it is free: ► Get the free playbook: https://capitalism.com/100K Thorne is forty years old, and everything that made it worth $3.8 billion happened in the last three. It had gone public and lost more than half its value when a private equity group took it off the market, and Procter & Gamble has now agreed to buy it with the same products on the shelf. I break down the playbook L Catterton ran, why sales roughly doubled while the price went up more than five times, and the three things besides revenue that decide what a buyer pays you, whether you would rather buy a business like this one or build one worth buying. Resources mentioned in the episode: ► The $100K Playbook: https://capitalism.com/100K (0:00) The same company, the same products, and a $3.8 billion payday three years later (1:00) The products sitting on my desk are all saturated markets, and that is the point (2:00) The terms: Procter & Gamble, all cash, and why a deal like that closes (3:00) The seller is the real story: L Catterton, from Kodiak Cakes to Nutrafol (4:00) Buy the whole company, get it off the public exchange, run the playbook in private (5:00) The new CEO went back to basics and decided who Thorne was actually for (6:00) Direct-to-consumer acquisition, after years of selling only through physicians (7:00) Auto-ship, and why keeping the customer was worth more than getting them (8:00) They refused to discount the brand, and that is what protected the margins (9:00) Plain old fish oil, sold to the person who wants the best fish oil (10:00) Lesson one, follow the money: Nutrafol, Gruns, Onnit (11:00) Thorne grew by doing less, and retention mattered more than acquisition (12:00) The part that shocked me: sales doubled, the price went up more than 5X (13:00) What actually moves a valuation: leadership, a growth story, and timing (15:00) The two ways to compress forty years into three: buy a neglected brand, or run the playbook on your own (17:00) Primal Kitchen sold to Heinz, and the big money made it better DISCLAIMER: The information contained on this Podcast Channel and the resources available for download/viewing through this Podcast Channel are for educational and informational purposes only.