Michael Kors Worth $2 Billion

According to The Hollywood Reporter, word on the stweet is that Michael Kors is looking for an equity partner for his self-branded clothing and lifestyle brand. He has reportedly put a pricetag of $250 million for 25% of the company, estimating its total valuation at about $2 billion dollars.

No doubt that Michael Kors has steadily grown over the past few years but entrepreneurs always have to be wary of ensuring that they don't start to sell too soon or too late. My instinct is that it may be early, as Micheal Kors has potential for growth to become a more established brand, so maybe a better strategy would be to sell a smaller stake at around 12.5% or 10%. Others have said the valuation is too low due to potential of the brand. But who knows, he may be selling to cover expenditure or spur some growth. The $2 bil valuation is double the amount of their reported profits.