1 00:00:05,240 --> 00:00:06,720 Speaker 1: This is what the Flux. 2 00:00:06,760 --> 00:00:09,879 Speaker 2: I'm Brett and a Justin. It's Wednesday, eighteenth February. 3 00:00:09,960 --> 00:00:12,800 Speaker 1: Well, well, well, judgy boy, the government's been sprooking its 4 00:00:12,800 --> 00:00:15,720 Speaker 1: five percent deposit plan as the golden ticket into housing, 5 00:00:15,880 --> 00:00:18,759 Speaker 1: but the International Monetary Fund has taken its own shot 6 00:00:18,800 --> 00:00:21,239 Speaker 1: at the government. They reckon that this policy will drive 7 00:00:21,320 --> 00:00:24,080 Speaker 1: up house prices big time. That is a very different 8 00:00:24,120 --> 00:00:26,120 Speaker 1: sales pitch to the government's. 9 00:00:25,640 --> 00:00:28,320 Speaker 2: One, very very different b man. Only time will tell 10 00:00:28,640 --> 00:00:30,640 Speaker 2: Fox Sam. If you're feeling stuck at the starting line 11 00:00:30,680 --> 00:00:33,280 Speaker 2: of your investment journey, we have got you because this 12 00:00:33,400 --> 00:00:36,640 Speaker 2: month's Academy course Share Market Basics from zero to Investor 13 00:00:36,760 --> 00:00:39,240 Speaker 2: cuts through all the clutup. We're breaking down share buying, 14 00:00:39,360 --> 00:00:42,520 Speaker 2: decoding your risk tolerance, and unlocking the secrets of ETFs. 15 00:00:42,560 --> 00:00:43,720 Speaker 2: So if you want to learn more, make sure you 16 00:00:43,760 --> 00:00:45,960 Speaker 2: download the Flux app and check out the academy this month. 17 00:00:46,000 --> 00:00:48,720 Speaker 1: Three riveting stories Today Juzzy Boy, Let's do it for 18 00:00:48,880 --> 00:00:51,280 Speaker 1: our first Colds has been taken to court by the 19 00:00:51,320 --> 00:00:55,600 Speaker 1: AH Triple C for utterly misleading consumers on grocery prices. 20 00:00:56,080 --> 00:00:58,640 Speaker 2: So you're telling me downdown deals were actually prices going 21 00:00:58,760 --> 00:01:00,800 Speaker 2: up up a man, tell me more so. 22 00:01:00,960 --> 00:01:04,000 Speaker 1: Coals is one of Australia's biggest supermarket chains, neck and 23 00:01:04,240 --> 00:01:07,080 Speaker 1: or neck with Woolies or a weekly trolley victory. 24 00:01:07,280 --> 00:01:09,639 Speaker 2: Yeah, and now the A Triple C has dragged Coals 25 00:01:09,640 --> 00:01:12,800 Speaker 2: into the Federal court over its discount promotions. 26 00:01:12,240 --> 00:01:14,520 Speaker 1: And Coals Radio You mean the radio station that plays 27 00:01:14,600 --> 00:01:16,360 Speaker 1: nineties absolute banger ni. 28 00:01:16,600 --> 00:01:19,520 Speaker 2: Correct, But they also run a lot of Coal's ads 29 00:01:19,560 --> 00:01:21,360 Speaker 2: in between those Backstreet boys bangers. 30 00:01:21,440 --> 00:01:24,160 Speaker 1: You see. The A Triple C alleges that Coals briefly 31 00:01:24,319 --> 00:01:27,360 Speaker 1: raised prices, then advertised a discount that was still higher 32 00:01:27,360 --> 00:01:30,039 Speaker 1: than the original price. Go on, well, For example, a 33 00:01:30,040 --> 00:01:32,520 Speaker 1: bag of dog food was four bucks for two hundred 34 00:01:32,520 --> 00:01:34,720 Speaker 1: and ninety six days, then it jumped to six bucks 35 00:01:34,720 --> 00:01:37,280 Speaker 1: for a week, then discounted to four dollars fifty. 36 00:01:37,400 --> 00:01:39,400 Speaker 2: That does not smell like a discount to meb man. 37 00:01:39,440 --> 00:01:42,640 Speaker 1: The regulator argues that Coals new customers would switch products 38 00:01:42,640 --> 00:01:46,119 Speaker 1: if they realized prices were rising, so they framed increases 39 00:01:46,280 --> 00:01:47,199 Speaker 1: as discounts. 40 00:01:47,520 --> 00:01:50,680 Speaker 2: The old price anchoring in play well and truly, Yeah, 41 00:01:50,720 --> 00:01:52,760 Speaker 2: So what's the key learning here? Price anchoring is a 42 00:01:52,800 --> 00:01:56,400 Speaker 2: behavioral economics principle. The consumers rather heavily on the first 43 00:01:56,440 --> 00:01:59,320 Speaker 2: reference price they see when judging value. Anchoring works because 44 00:01:59,360 --> 00:02:02,480 Speaker 2: shoppers don't crack price history across hundreds of items. Nope, 45 00:02:02,560 --> 00:02:04,280 Speaker 2: they use shortcuts to sniff out a bargain. 46 00:02:04,360 --> 00:02:07,480 Speaker 1: Think special tags or yellow stickers that act as mental 47 00:02:07,560 --> 00:02:09,840 Speaker 1: signals that value exists right here. 48 00:02:09,720 --> 00:02:11,760 Speaker 2: Yep, and be man. This tactic is pretty common across 49 00:02:11,800 --> 00:02:14,120 Speaker 2: industries like fashion or airline. 50 00:02:13,760 --> 00:02:16,760 Speaker 1: But regulators step in when the anchor becomes misleading rather 51 00:02:16,840 --> 00:02:18,000 Speaker 1: than informative calls. 52 00:02:18,000 --> 00:02:20,080 Speaker 2: Aren't the first to be under the firing line for 53 00:02:20,160 --> 00:02:21,160 Speaker 2: misleading pricing? 54 00:02:21,240 --> 00:02:24,440 Speaker 1: Now? Remember when Michael Hill, the Jeweler, and my house 55 00:02:24,600 --> 00:02:28,079 Speaker 1: round Black Friday discounts that exaggerated the real savings. 56 00:02:27,720 --> 00:02:30,400 Speaker 2: I do, and they receive some pretty stern infringement notices 57 00:02:30,440 --> 00:02:32,600 Speaker 2: from the atriple Ce. So josey boy, it's pretty clear 58 00:02:32,639 --> 00:02:35,920 Speaker 2: that a discount is misleading if the reference price is artificial, 59 00:02:35,960 --> 00:02:38,400 Speaker 2: and the atrible c will come after you hard. 60 00:02:38,680 --> 00:02:41,840 Speaker 1: For our second story, Seek is putting its stake in 61 00:02:41,919 --> 00:02:45,040 Speaker 1: Employment Hero up for sale, ending an eight year startup 62 00:02:45,080 --> 00:02:47,440 Speaker 1: partnership right after their courtroom. 63 00:02:47,000 --> 00:02:51,200 Speaker 2: Drama closure achieved and cap table wiped clean. So what 64 00:02:51,320 --> 00:02:51,919 Speaker 2: is going on here? 65 00:02:51,960 --> 00:02:56,200 Speaker 1: So Seek's Australia's biggest online jobs marketplace, with job marketplaces 66 00:02:56,240 --> 00:02:57,160 Speaker 1: across the world as well. 67 00:02:57,200 --> 00:02:59,560 Speaker 2: We're talking China, South America, Southeast Asia. 68 00:02:59,680 --> 00:03:02,160 Speaker 1: And it has also been investing in startups since the 69 00:03:02,200 --> 00:03:04,880 Speaker 1: mid twenty tens, first through Seek itself, then through its 70 00:03:04,960 --> 00:03:07,239 Speaker 1: VC Seek Investments. 71 00:03:07,080 --> 00:03:09,880 Speaker 2: Man here's where it starts. Seek first invested in Employment 72 00:03:09,880 --> 00:03:12,320 Speaker 2: Hero back in twenty seventeen and has helped invest in 73 00:03:12,480 --> 00:03:15,400 Speaker 2: multiple rounds as Employment Heroes continues to expand. 74 00:03:15,440 --> 00:03:17,480 Speaker 1: Since then, Employment Hero has grown to more than three 75 00:03:17,520 --> 00:03:19,919 Speaker 1: hundred million bucks in annual recurring revenue and. 76 00:03:19,880 --> 00:03:21,640 Speaker 2: A more than two billion dollar valuation. 77 00:03:21,800 --> 00:03:25,040 Speaker 1: In January last year, Seeks VC sold ninety five million 78 00:03:25,080 --> 00:03:28,520 Speaker 1: bucks worth of Employment Hero shares. It's still kept at 79 00:03:28,600 --> 00:03:29,240 Speaker 1: chunky steak. 80 00:03:29,320 --> 00:03:32,079 Speaker 2: Then July last year the drama started because Employment Hero 81 00:03:32,200 --> 00:03:34,400 Speaker 2: took Seek to court or the access to one of 82 00:03:34,400 --> 00:03:35,160 Speaker 2: their APIs. 83 00:03:35,280 --> 00:03:37,600 Speaker 1: They ended up settling out of court, but clearly the 84 00:03:37,680 --> 00:03:38,840 Speaker 1: dust hasn't really settled. 85 00:03:38,880 --> 00:03:41,200 Speaker 2: No, no, no, because Seek has just announced it plans 86 00:03:41,240 --> 00:03:43,680 Speaker 2: to sell down its remaining stake in Employment Hero. 87 00:03:43,840 --> 00:03:46,440 Speaker 1: So basically all forgiven but nothing forgotten. 88 00:03:47,120 --> 00:03:49,520 Speaker 2: See claims This is all part of their typical exit 89 00:03:49,600 --> 00:03:52,800 Speaker 2: strategy for the stage in its investment life cycle, So 90 00:03:52,880 --> 00:03:55,000 Speaker 2: what's the key learning here? An exit strategy is the 91 00:03:55,040 --> 00:03:58,640 Speaker 2: plan that investors used to realize the value of their investment. 92 00:03:58,320 --> 00:04:01,600 Speaker 1: Venture capital and corporate venture funds. They don't make money 93 00:04:01,680 --> 00:04:03,040 Speaker 1: just because startup. 94 00:04:02,680 --> 00:04:05,480 Speaker 2: Grows, Nope, they only profit when they sell their shares 95 00:04:05,640 --> 00:04:06,200 Speaker 2: and jus boy. 96 00:04:06,320 --> 00:04:09,600 Speaker 1: There are typically three main strategies to exit an investment. 97 00:04:09,640 --> 00:04:12,920 Speaker 1: Strategy one the company IPOs on the stock exchange. For example, 98 00:04:12,960 --> 00:04:16,400 Speaker 1: Google Ventures invested in uber back in twenty thirteen, made 99 00:04:16,400 --> 00:04:18,520 Speaker 1: billions when an ipoid in twenty nineteen. 100 00:04:18,640 --> 00:04:21,080 Speaker 2: Strategy two as a trade sale of the business where 101 00:04:21,080 --> 00:04:23,279 Speaker 2: they sell the shares of the company to another company 102 00:04:23,320 --> 00:04:24,200 Speaker 2: or private equity firm. 103 00:04:24,320 --> 00:04:26,839 Speaker 1: Or strategy three is a secondary sale like sikhs move, 104 00:04:26,839 --> 00:04:29,800 Speaker 1: where investors sell a stake to other investors while the 105 00:04:29,800 --> 00:04:31,200 Speaker 1: business remains private. 106 00:04:30,920 --> 00:04:33,679 Speaker 2: And the man. Exits are critical for investors because startup 107 00:04:33,720 --> 00:04:36,040 Speaker 2: investing is very illiquid. 108 00:04:35,560 --> 00:04:38,599 Speaker 1: And since Stek first invested in Employment Hero back in 109 00:04:38,640 --> 00:04:41,320 Speaker 1: twenty seventeen, it's been more than nine years and time 110 00:04:41,360 --> 00:04:43,279 Speaker 1: to get some cashiola out of there, so be man. 111 00:04:43,320 --> 00:04:45,200 Speaker 2: It might be part of the investment life cycle, but 112 00:04:45,240 --> 00:04:47,880 Speaker 2: it's also part of Siek's healing process. 113 00:04:47,400 --> 00:04:50,880 Speaker 1: For our third and final story, Sushi Sushi has been 114 00:04:50,920 --> 00:04:53,960 Speaker 1: snapped up by Japan's Ganke for one hundred and sixty 115 00:04:54,040 --> 00:04:57,120 Speaker 1: million bucks, taking the humble Aussie hand roll global. 116 00:04:57,240 --> 00:04:59,720 Speaker 2: Weale Theauzzi hand roll making moves around the world. So 117 00:05:00,000 --> 00:05:00,760 Speaker 2: tell me what's going on here. 118 00:05:00,839 --> 00:05:03,560 Speaker 1: So Sushi Sushi started almost thirty years ago in Melbourne 119 00:05:03,680 --> 00:05:07,440 Speaker 1: selling non traditionally Japanese grab and go sushi roll and. 120 00:05:07,520 --> 00:05:09,880 Speaker 2: Since then this grab and go sushi roll concept has 121 00:05:09,920 --> 00:05:11,760 Speaker 2: blown up, and so has Sushi Sushi. 122 00:05:11,839 --> 00:05:14,479 Speaker 1: In fact, it's grown to one hundred ninety stores nationwide 123 00:05:14,560 --> 00:05:17,680 Speaker 1: with a whole range of different Japanese inspired snaky's. 124 00:05:17,760 --> 00:05:19,680 Speaker 2: You want kariaki Chicken, they've rolled it. 125 00:05:19,880 --> 00:05:23,680 Speaker 1: You want Avo Tuna, Oh, they've definitely rolled that one out. 126 00:05:24,080 --> 00:05:26,279 Speaker 2: And bi Man. Sushi Sushi was first sold to private 127 00:05:26,279 --> 00:05:28,719 Speaker 2: equity owner Odyssey back in twenty nineteen, and now. 128 00:05:28,720 --> 00:05:31,880 Speaker 1: Odyssey has sold Sushi Sushi to a Japanese dining giant, 129 00:05:31,920 --> 00:05:35,480 Speaker 1: Gyanke Global Dining Concepts for a reported one hundred and 130 00:05:35,480 --> 00:05:36,280 Speaker 1: sixty million bucks. 131 00:05:36,400 --> 00:05:38,480 Speaker 2: And who is this Yankee Global Dining Concepts that you 132 00:05:38,520 --> 00:05:38,880 Speaker 2: speak of? 133 00:05:39,120 --> 00:05:39,600 Speaker 1: Well? Does it? 134 00:05:39,640 --> 00:05:39,800 Speaker 2: Boy? 135 00:05:39,839 --> 00:05:42,839 Speaker 1: They started back in the nineteen sixties with sushi trained 136 00:05:42,920 --> 00:05:46,400 Speaker 1: stores that obviously have grown to introduce Japanese fast food 137 00:05:46,440 --> 00:05:49,160 Speaker 1: to over thirteen countries, and biman Gyank plans to keep 138 00:05:49,200 --> 00:05:51,520 Speaker 1: the Sushi Sushi strategy the same, but once to use 139 00:05:51,600 --> 00:05:54,040 Speaker 1: its global supply chain and tech to speed up their 140 00:05:54,080 --> 00:05:57,080 Speaker 1: growth even more. We're talking four hundred and fifty Ozzie 141 00:05:57,120 --> 00:06:00,000 Speaker 1: stores and international expansion into markets like the Middle East. 142 00:06:00,000 --> 00:06:01,719 Speaker 2: It's a very different approach to private equity. 143 00:06:02,080 --> 00:06:03,120 Speaker 1: So what's the key learning here? 144 00:06:03,279 --> 00:06:06,080 Speaker 2: Not all buyers what the same thing. When acquiring a company. 145 00:06:05,880 --> 00:06:09,760 Speaker 1: A financial buyer like private equity, focuses on improving profitability 146 00:06:09,839 --> 00:06:10,880 Speaker 1: and valuation with the. 147 00:06:10,920 --> 00:06:12,800 Speaker 2: Goal of selling later, just like Odyssey. 148 00:06:12,880 --> 00:06:15,400 Speaker 1: Did hear they bought Sushi Sushi for fifty to sixty 149 00:06:15,480 --> 00:06:17,600 Speaker 1: million bucks when it had around sixty. 150 00:06:17,279 --> 00:06:19,160 Speaker 2: Stores, and they sold it for roughly one hundred and 151 00:06:19,200 --> 00:06:21,120 Speaker 2: sixty mel once it had grown to one hundred and 152 00:06:21,160 --> 00:06:21,719 Speaker 2: ninety stores. 153 00:06:21,920 --> 00:06:24,080 Speaker 1: That is the private equity playbook. Improved the business and 154 00:06:24,160 --> 00:06:25,800 Speaker 1: prepare to sell it to the next owner. 155 00:06:25,880 --> 00:06:28,279 Speaker 2: But they man a strategic buyer like Yankee is different. 156 00:06:28,440 --> 00:06:31,400 Speaker 2: They're looking for synergy and yes, the buzzword actually fits here. 157 00:06:31,640 --> 00:06:34,840 Speaker 1: So Sushi Sushi gets faster growth and Yankee expands its 158 00:06:34,880 --> 00:06:36,920 Speaker 1: international footprint at the same. 159 00:06:36,800 --> 00:06:39,560 Speaker 2: Time, win win. If you want to know how to 160 00:06:39,600 --> 00:06:42,800 Speaker 2: buy and sell shares, a little bit of technical, fundamental analysis, 161 00:06:42,839 --> 00:06:45,280 Speaker 2: and some investing strategies, we have it all covered in 162 00:06:45,400 --> 00:06:47,640 Speaker 2: the Flux Academy this month. You do not want to 163 00:06:47,680 --> 00:06:50,040 Speaker 2: miss out on this one. We're talking leaderboards and verses 164 00:06:50,120 --> 00:06:51,600 Speaker 2: to make sure it. Download the Flux out to check 165 00:06:51,600 --> 00:06:52,160 Speaker 2: out the Academy. 166 00:06:52,240 --> 00:06:54,760 Speaker 1: Thanks for listening and we'll see you on for write 167 00:06:54,760 --> 00:06:54,800 Speaker 1: a