In the process of interviewing for a strategy/Corp dev position at an activewear/athleisure company and they want me to think of a couple tangential industries that may have companies for acquisition and do a write up. I’m stumped on what else an activewear company would buy besides other activewear companies. I can only think of home fitness (Lulu’s Mirror) or vitamins/supplements. Any thoughts?

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This is an interview so just trying to see how you think. For adjacent acquisitions, cross-sell / revenue synergies is the name of the game. What do people who buy athliesure also buy? Fitness apps, wearables, at home fitness equipment / solutions, meal plan services, green juices / smoothie / protein mixes, etc

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Yeah this is the line of thinking I took but it seems too easy? The last acquisition by an activewear company that I can think of is LULUs mirror acquisition. Other than that, its more traditional clothing companies acquiring activewear targets like Levi acquiring beyond yoga

Do some digging on what the major players are doing in terms of M&A, product development, etc. that will help you get a grasp on the story of the industry. This will help you craft your thesis on what the best moves are.

Approach the exercise as if they are a client and are coming to you, the IB, for advice. If you have time, put together a 3-5 page deck.

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Don’t really see this company making a move big enough to get close to those tbh. It’s only a $800m rev private company.

Also thought of factories/fabric manufacturers but thought that was a cop out answer

Are there any financials or commentary available from the company? Like if they file a 10-K they might identify something in the Risks section that could help you think around a bolt on solution.

Looking at LULU’s, it seems the actionable risks are all around raw materials, supply chain, and data privacy issues. If the company has an international footprint or a large online retail operation, the latter might be an interesting / unique way to look at it.

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