Successful Sale of Footwear and Accessories Brand – Wild Rhino Shoes

Wild Rhino Shoes, a footwear and accessories brand, had built a successful business generating substantial cash flows by 2023. The management team decided to canvass the market for a 100% sell down. The ideal buyer needed to be one that would assist in taking the business through the next phase while continuing the legacy. The challenge was navigating the complex M&A process in the competitive footwear and accessories market, identifying the right strategic buyer, and maximizing shareholder value while ensuring the brand's legacy and goodwill would be preserved.

Moore Australia's Corporate Finance team provided comprehensive lead advisory services beginning in June 2023. The process started with a thorough analysis of the Footwear and Accessories market, including a concentrated look at footwear retailing, wholesaling, and digital aspects of the industry. Moore Australia gained detailed understanding of the business's operations, financial performance, and key shareholder objectives.

A Pricing Paper was prepared to give management a clear estimate of value and set expectations from the beginning. With hindsight of full year financials, crucial sale materials were prepared including a Financial Model, Information Memorandum, and Investment flyers (no-name teaser). These documents painted a complete picture for potential buyers highlighting the growth story, company culture, industry position, financial performance, and expansion plans.

Moore Australia utilized an extensive proprietary network of trade and financial buyers to present a highly targeted list of parties most likely to show interest. Wild Rhino was introduced to the market using a teaser/flyer on a no-names basis to maintain confidentiality, with interested parties asked to sign NDAs. Non-Binding Indicative Offers (NBIOs) were requested, and The Shoe Group was selected for exclusivity in October 2023.

Due diligence commenced with The Shoe Group utilizing external professional services for financial and tax due diligence, involving thorough analysis of all components of the business – financial, tax, operational and legal. Lawyers drafted key legal documents including new company constitutions, shareholders' agreements, employment agreements, lease transfer agreements, and share sale agreements. Completion occurred in late December 2023.

Completion was the culmination of 6 months' work. The client walked away with not only what he thought was the appropriate value of the business, but also a strategic buyer that would take the business to the next level and continue its decades-old legacy and build on the goodwill. The transaction successfully matched Wild Rhino Shoes with The Shoe Group, a buyer capable of taking the business forward while preserving its heritage and market position. Completion occurred on the back of strong Black Friday sales from November 2023.