Target Information

MAD, founded in 2009 by Delphine Vitry and Jean Révis, is a premier strategy consulting firm specializing in the luxury industry. The company has established itself as a leader in the sector, employing 60 consultants of eight different nationalities and operating from offices in Paris and Shanghai. MAD offers unique expertise that addresses challenges related to Brand, Product Offering, Distribution, and Talent for major global luxury brands and high-end experiential groups. The firm prides itself on blending 'Magic and Logic', effectively combining strategic insights with operational execution to support its clients in a rapidly growing market.

With annual revenues of approximately 20 million euros, MAD has demonstrated strong organic growth since its inception. Following a recent investment of 25 million euros, the firm aims to double its size over the next four years. This growth strategy includes organic expansion and the establishment of new offices in Milan, New York, and Dubai, which will enhance MAD's presence in both the French and Chinese markets. Additionally, the company plans to strengthen its offerings in Corporate Social Responsibility (CSR), supply chain expertise, data analysis, and artificial intelligence (AI), positioning itself as the industry's only 'one-stop shop' for luxury goods consulting.

Industry Overview

The luxury industry has consistently shown resilience and adaptability, even in fluctuating economic conditions. Growth in emerging markets, coupled with an increasing number of affluent consumers, has created a surge in demand for luxury products and services. Countries like China and those in the Middle East have become particularly significant as they boast a rapidly expanding base of high-net-worth individuals, indicative of the transforming landscape of global luxury consumption.

Moreover, with the advancement of technology and the digitalization of retail, luxury brands face new challenges and opportunities. The integration of e-commerce and social media has become essential for reaching target audiences, demanding an agile approach to marketing and distribution strategies. Firms in the luxury sector must navigate this digital evolution while maintaining the exclusivity and prestige associated with their brand identity.

In this context, sustainability and ethical practices have emerged as pivotal concerns for consumers. High-end customers increasingly seek brands that align with their values, prompting companies to prioritize CSR initiatives and sustainable sourcing. Business strategies that address environmental and social issues are no longer optional; they are essential components of a brand’s reputation and competitive advantage.

As luxury brands strive to meet these evolving demands, consulting firms like MAD play a crucial role in providing insights and strategies to navigate the complexities of this dynamic industry. Their expertise in areas such as supply chain management, data analytics, and strategic marketing is increasingly sought after as companies look to enhance their operational efficiency and brand appeal.

Rationale Behind the Deal

The recent investment by Activa in MAD signifies a strategic move to capitalize on the growing demand for luxury consulting services. By partnering with Activa, MAD gains not only financial resources but also access to valuable expertise that can aid in its ambitious expansion plans. This partnership is expected to accelerate MAD's growth trajectory, which is already marked by strong organic performance and significant market potential.

Furthermore, this investment allows MAD to enhance its operational capabilities in key areas, such as CSR and AI, which are increasingly critical for success in the luxury sector. Activa’s involvement ensures that MAD can maintain its entrepreneurial spirit while pursuing a comprehensive growth strategy.

Investor Information

Activa is known for investing in small- and medium-sized enterprises (SMEs) during primary transactions, focusing on fostering growth and providing strategic support. With the recent investment in MAD, Activa is reinforcing its commitment to the luxury consulting sector, having made this transaction the sixth investment from its latest fund, Activa Capital Fund IV. Activa’s expertise in operational support will be instrumental in guiding MAD through its next stage of development.

The investment aligns with Activa's strategy of collaborating with dynamic companies that possess a strong market position and growth potential. By partnering with MAD, Activa aims to enhance its portfolio by contributing to the company's efforts in addressing contemporary challenges faced by the luxury industry.

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The investment in MAD by Activa presents a compelling opportunity within the luxury consulting market. Given MAD’s established reputation and strong performance record, this move could significantly benefit both parties. The firm's commitment to expanding internationally, particularly in luxury hotspots such as Milan and New York, coupled with its focus on CSR and technological advancements, positions it well for future growth.

Moreover, the inclusion of key management in the capital structure ensures continuity and strengthens MAD’s leadership, which is essential for navigating the complexities of international expansion. This balance of fresh capital and managerial expertise will enable MAD to execute its growth plans more effectively.

As consumers increasingly prioritize sustainability and ethical practices in their purchasing decisions, MAD's strategic focus on CSR and AI align with current market trends. This responsiveness to consumer demands can further solidify its competitive advantage, making the partnership with Activa particularly timely and beneficial.

In conclusion, the investment by Activa in MAD is poised to be a strong investment opportunity that could yield significant returns, driven by the luxury industry’s continued growth and transformation. As MAD enhances its capabilities and expands its footprint, it stands to become an even more pivotal player in the luxury consulting arena.

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