Harry's

DTC's only exit is a PE buyout priced on profit, not revenue

Sam predicts direct-to-consumer brands, after Harry's was blocked and Casper went public at half its private valuation, will have to sell to private equity firms that ruthlessly prioritize profit and value them at 5-10x profit instead of a revenue multiple.

“My prediction is, and I think many people have this prediction, is that the DTC companies, what they're going to have to do is go the route of getting sold to PE companies. Right. And which means it's going to be ruthlessly prioritized of profits. Profits. So like 5, 10 times profit. I think it's a good thing.”