What is a brand management firm?

A brand management firm specializes in acquiring and managing intellectual property, particularly well-known brand names. These companies, like Authentic Brands Group and WHP Global, buy the rights to established brands and generate revenue by licensing those names to manufacturers and retailers. They focus on the value of the brand itself rather than running retail operations, allowing them to extract value from recognizable names without managing traditional retail businesses.

Why would a company become an acquisition target?

Companies become acquisition targets when their perceived value differs from their market value. In retail, brands with strong name recognition but underperforming financials are particularly attractive to acquirers. These firms may have valuable intellectual property (their brand names) that could be more profitable if managed differently, such as through licensing agreements. The acquirer sees opportunity to pay current shareholders a premium while still making a profit through more efficient brand management.

What happens to my shares if a company gets acquired?

When a company gets acquired, shareholders typically receive compensation for their shares, either in cash, stock of the acquiring company, or a combination of both. The acquisition offer usually includes a premium above the current market price, which is why stock prices often rise when acquisition rumors or announcements occur. If you own shares in a company that gets acquired, you'll generally receive the agreed-upon payment automatically after the deal closes, with the shares being converted or cashed out according to the terms of the acquisition.

What does "Market Cap" mean in the stock data?

Market Cap (short for Market Capitalization) represents the total value of a company's outstanding shares of stock. It's calculated by multiplying the current share price by the total number of shares outstanding. Market Cap helps investors understand the size of a company: large-cap companies (typically over $10 billion) are usually more established but may grow more slowly, while small-cap companies might offer more growth potential with higher risk. In the context of acquisition targets, companies with strong brands but relatively small market caps can be particularly attractive to acquirers.

How does an acquisition affect stock prices?

When an acquisition is announced, the stock price of the company being acquired typically rises, often approaching the offered purchase price. This happens because acquirers usually pay a premium over the current market value to convince shareholders to sell. The size of this "acquisition premium" can range from 10% to 50% or more above the pre-announcement price, depending on factors like the company's perceived value and competitive bids. For investors, holding stocks that become acquisition targets can result in significant short-term gains when deals are announced.

15 handpicked stocks

Retail Acquisition Targets

A curated collection of established apparel and retail companies that could be next in line for acquisition. These stocks have valuable brand identities that make them attractive takeover targets for brand management firms looking to unlock their untapped potential.

Han Tan | Market Analyst

Published on July 3

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

V.F. Corporation

VFC

Current price

$14.69

As the owner of a large portfolio of iconic but currently underperforming brands like Vans, The North Face, and Timberland, V.F. Corp fits the profile...

As the owner of a large portfolio of iconic but currently underperforming brands like Vans, The North Face, and Timberland, V.F. Corp fits the profile of a company whose brand IP could be attractive to an acquisition firm.

PVH Corp.

PVH

Current price

$82.93

With globally recognized brands like Calvin Klein and Tommy Hilfiger, PVH represents a prime target for a brand management firm looking to acquire a p...

With globally recognized brands like Calvin Klein and Tommy Hilfiger, PVH represents a prime target for a brand management firm looking to acquire a portfolio of high-value fashion IP.

G-III Apparel Group, Ltd.

GIII

Current price

$27.18

G-III's portfolio of owned and licensed brands, including DKNY and Karl Lagerfeld, makes it an attractive target for a brand aggregator seeking to con...

G-III's portfolio of owned and licensed brands, including DKNY and Karl Lagerfeld, makes it an attractive target for a brand aggregator seeking to consolidate fashion IP.

Wolverine World Wide Inc.

WWW

Current price

$30.40

Columbia Sportswear Company

COLM

Current price

$53.90

Levi Strauss & Co.

LEVI

Current price

$22.50

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+32.79%

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About This Group of Stocks

Our Expert Thinking

Brand management firms are increasingly recognizing the value in underperforming but established retail brands. The recent acquisition bids for Lands' End highlight this trend, where companies see opportunity in licensing out iconic brand names to unlock significant hidden value.

What You Need to Know

These stocks represent companies with strong brand recognition but modest market valuations. The investment opportunity lies in potential acquisition premiums if these companies become takeover targets, making this a tactical, event-driven strategy within the consumer retail space.

Why These Stocks

Each company in this group owns valuable intellectual property in the form of recognizable brand names. They were selected because they mirror the profile of current acquisition targets like Lands' End, with established brand identities that could be more valuable to brand management firms.

Group Performance Snapshot

32.79%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 32.79% over the next year.

9 of 14

Stocks Rated Buy by Analysts

9 of 14 assets in this group are rated Buy by professional analysts.

6.3% vs 4%

Group Growth vs Bank interest

This group averaged a 6.3% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

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Hidden Value Ready to Unlock

These companies own valuable brand names that might be worth more than their current stock prices suggest. When acquisitions happen, stock prices often jump significantly.

🔍

The Next Takeover Target

Brand management firms are actively hunting for their next acquisition. Being invested before a takeover announcement could mean catching substantial gains if an offer comes in.

🛍️

Names You Already Know

These aren't obscure companies but brands you've likely worn or shopped. Their familiar names are exactly what makes them valuable IP targets for brand management firms.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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Why Invest with Nemo Money?

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6% Interest on Cash

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Frequently Asked Questions

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