M&A

Lark Apparel: sell the Fern brand or keep it?

Lark, a women's apparel company; US operations with the Lark and Fern brands.

Should Lark sell the Fern brand or keep it?

Skills tested

• Structure
• Quantitative analysis
• Exhibits and insights
• Synthesis and communication

Concepts

• divestiture
• hold vs sell
• revenue projection by channel
• revenue multiples
• outlier in comparables
• payback after tax