Investment for Expansion of Wholesale and Retail Clothing Company

Modernization and re-branding of the retail chain (existing 4 stores), optimization of the assortment – 140 000 EUR (with the adjustments of the return of VAT).

D’accordissima company is considering a possibility of a joint venture with an investor on the following terms:
Main parameters of the joint venture:
Owner/investor share percentage: 80/20 respectively.
The investor inputs 2 mln.EUR in the authorized capital stock, during the years 2010 and 2012, according to the investment schedule
Activity terms of the Joint Venture: 4Q 2010 – 2012.

Exit of the investor is possible with the purchase of his share (with the agreed value based on the actual multiplicators of the sector) or by the joint sale of the company.
IRR for the investor: 59%

Objectives of the investment:
- Modernization and re-branding of the retail chain (existing 4 stores)
- Enlargement of the retail chain (opening of 10 new stores)
- Increase of the working capital (Logistics optimization of the seasonal goods)

This will allow an increase of the receipts of the shops by an average of 30%.

Enlargement of the retail chain (opening of 10 new stores) – 510 000 EUR (with the adjustments of the return of VAT). This will give an additional 2,5 million EUR revenue in 2012 (0,6 mln. EUR EBITDA)
Increase of the working capital (Logistics optimization of the seasonal goods) 1 350 000 EUR - This will allow the company to decrease the goods delivery time, gain major discount from the suppliers, increase the sales volume.

Interested investors can contact us on Merar.