It was October 2016 when Legami officially opened its share capital to Alto Partners and Rancilio Cube. The two investment funds invested 7.6 million to purchase the 42% of Legami. Alto Partners, through the fund Alto Capital III, purchased the 39% of share capital, while Rancilio Cube the 3%. The governance of the company also changed: a new board of directors has been appointed with a chairman appointed by Mr Fassi, three directors represented the three shareholders. This case study aims at reviewing that successful M&A transaction and specifically: I) Business perspectives; II) Valuation methodologies and price setting; III) Negotiation; IV) Governance, Roles and Responsibilities. After the creation of the company in 2003 in Milan by Mr Alberto Fassi, Legami started to operate in 2005 and 2006 where new managers were hired and products started to get distributed in all the regions in Italy. Between 2007 and 2010, the company started to consolidate its position in the Italian market. Between 2011 and 2014, the company's sales started to peak reaching EUR9.3M with an Ebitda Margin of 11%, thanks to the opening of two new concept stores and the winning of significant key accounts in Italy and abroad. For Mr Fassi, the company was ready to continue its path in 2015 but in order to realize the strategic plan, some issues needed to be solved through some significant changes. The main entrepreneurial question was: What's next?
We are young, we are curious, we are dreamers: the Legami growth path
Anconetani, Rachele;Colantoni, Federico;Pippo, Federico
2020
Abstract
It was October 2016 when Legami officially opened its share capital to Alto Partners and Rancilio Cube. The two investment funds invested 7.6 million to purchase the 42% of Legami. Alto Partners, through the fund Alto Capital III, purchased the 39% of share capital, while Rancilio Cube the 3%. The governance of the company also changed: a new board of directors has been appointed with a chairman appointed by Mr Fassi, three directors represented the three shareholders. This case study aims at reviewing that successful M&A transaction and specifically: I) Business perspectives; II) Valuation methodologies and price setting; III) Negotiation; IV) Governance, Roles and Responsibilities. After the creation of the company in 2003 in Milan by Mr Alberto Fassi, Legami started to operate in 2005 and 2006 where new managers were hired and products started to get distributed in all the regions in Italy. Between 2007 and 2010, the company started to consolidate its position in the Italian market. Between 2011 and 2014, the company's sales started to peak reaching EUR9.3M with an Ebitda Margin of 11%, thanks to the opening of two new concept stores and the winning of significant key accounts in Italy and abroad. For Mr Fassi, the company was ready to continue its path in 2015 but in order to realize the strategic plan, some issues needed to be solved through some significant changes. The main entrepreneurial question was: What's next?
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