Senior Centerstone professionals are frequently called upon as thought leaders to provide insights on key trends across various industries.
Quoted in the Media
Indoor Recreation Company CircusTrix Lands Investment From Palladium
CircusTrix has built a strong presence on social media over the years and has room for growth, both domestically and internationally, Mr. Farin added. Mr. Farin said he expects there to be more deal activity in the indoor-recreation space this year, partly driven by the interest from private-equity firms. “My belief is that there will be more deals led by private-equity firms before strategics jump into the sector,” Mr. Farin said. “We found that private-equity firms are more comfortable, given the risk profile and the newness of the sector.”
How the DTC Bust Could Play Out
“The ones that are public that are trading below IPO price are going to be acquisition candidates,” said Arash Farin, managing director at [an] investment bank which has advised Bombas, MeUndies and Chubbies on investments and exits. “It’s going to take so long for them to get back to IPO price.
What Poshmark’s $1.2 Billion Buyout Says About Fashion Dealmaking
And Arash Farin, managing director, [and] one of fashion’s most prolific dealmakers, said “M&A is still humming along, although not as robustly as it was before 2022.” “Fashion per se has been out of favor for quite some time, whether it’s denim or accessories, it’s been a very difficult sector to transact in for quite some time,” Farin said. “A lot of our dealflow in the apparel sector has gone away in favor of other sectors, like beauty and direct to consumer and so on."
The Next Wave of DTC Acquisitions
Start-ups don’t have to actually be profitable to find a buyer. Taking steps like more strategically managing ad spend and not selling items at a loss sends the right signal, said Arash Farin, a managing director, which advises digital brands on acquisition strategies. “DTC brands would be wise to show that their unit economics are solid,” Farin said.
DTC Briefing: Founders are ‘battening down the hatches’ as M&A cools
“I consider what’s happening now maybe more like a mild cold than the severe flu or pneumonia that we saw in 2008, 2009 or in March of 2020 where there was just a complete stop,” Arash Farin, managing director, said. Farin said “everyone’s open for business, everyone’s looking to do transactions. But a lot of the private equity firms are saying, ‘do your clients realize that valuations are different than before?’” For startups looking to sell to a private equity firm, EBITDA is more important than ever, And in the private markets, valuations have similarly fallen. Farin said that some of the best companies can still get valuations that equate to a high single-digit or low double-digit multiple of EBITDA.
How to Fundraise in a Bear Market
“Investors are more rational and thoughtful,” said Arash Farin, managing director, [at] an investment bank that has advised brands like Rowing Blazers, Frankies Bikinis and Bombas. “Still, not just strategic but large-scale private equity players are going after younger companies in a much more aggressive way.” “Good companies are going to emerge in any market and history shows that markets like this can be fertile ground for starting the next generation of great new companies,” Farin said.