One question that has come up a few times is how a person like you could see a return from an investment in Outlaw.
Here's the Outlaw Wealth Building Strategy (results not guaranteed, but we'll do our God's honest best):
Once we prove the concept of this new, agile product development process, we'll expand on the business until we're an attractive acquisition for a larger company or a private equity firm, or until we're ready to go public.
If Outlaw gets acquired, the acquiring company will buy all the shares of Outlaw (including yours, if you choose to invest) and you'll get paid according to your percentage ownership in the company (so, for example, if you own 10% of Outlaw and Outlaw gets acquired for $10M, you'd get $1M).
What do companies like Outlaw usually sell for? It depends on the revenue and EBIDTA (Earnings Before Interest, Tax, Depreciation, and Amortization).
- In August, Naturium (skincare brand) was acquired by e.l.f for $355M. Naturium is expected to make $90M in revenue and $17M in adjusted EBIDTA in 2024.
- In September, Hince (skincare brand) was acquired by LG for $31.5M. Hince had approximately $16M in revenue (no EBIDTA info was available) in 2023.
- In January (last month), Honey Pot (personal care brand) started the process of being acquired by Compass Diversified for $380M. Honey Pot had approximately $121M in revenue and $29M in EBIDTA in 2023.
Note: Most private acquisitions don't publish their terms, so I can't report on those. However, you can see the current acquisition landscape at Crunchbase.
If Outlaw goes public, you'll own a percentage of the "market capitalization" value of Outlaw at that time (which depends on a lot of factors). When that happens, you could either hang on to your shares and let the value grow over time, or you can sell your shares for the market price (so, for example, if you own 10% of Outlaw and Outlaw goes public with a market cap of $161M - 2022's average pre-IPO valuation - you'd have $16M of Outlaw shares to keep or sell).
I'd prefer to go public, because that most aligns with my hopes of creating a growing source of wealth for everyone who invested. I want to make it possible for people like you and me to have the kind of returns that venture capitalists do... and so here we are, giving you the opportunity to invest (and also keep Outlaw going).
But people have advised me that it's a big ol' pile of accounting brouhaha and audits and all that. Those same people have advised me against getting that particular proctology exam from the SEC.
So it kind of depends on what happens both in and out of our control.
What about dividends? We decided to set up Outlaw for acquisition rather than dividends. This means a bigger payout at the end (whether that's acquisition or IPO), but no small, gradual payoff over time.
Being completely straight with you, as I always endeavor to be, Outlaw has some business hurdles to overcome, so this is not a get-rich-quick scheme. It's likely that Outlaw will take 3 - 5 years before we are a good candidate for acquisition.
We need to build a profitable, scalable business system, and then prove it over time. This crowdfunding campaign is the first step toward that profitable, scalable business system.
Want to know more about our plan? Read about it: https://wefunder.com/outlaw.soaps