1 00:00:05,320 --> 00:00:06,760 Speaker 1: This is what the flux. 2 00:00:06,840 --> 00:00:09,319 Speaker 2: I'm Brett and I'm justin and it's Wednesday, the twenty 3 00:00:09,320 --> 00:00:09,920 Speaker 2: fourth of July. 4 00:00:10,080 --> 00:00:10,600 Speaker 1: Flex VAM. 5 00:00:10,760 --> 00:00:13,120 Speaker 3: Just a little reminder that from the beginning of July, 6 00:00:13,400 --> 00:00:16,560 Speaker 3: your employer is now required to pay you eleven and 7 00:00:16,600 --> 00:00:19,640 Speaker 3: a half percent in super, up from eleven percent a 8 00:00:19,720 --> 00:00:22,680 Speaker 3: juzzy boy. According to the Treasury Department, that means that 9 00:00:22,760 --> 00:00:26,080 Speaker 3: the average worker will pocket about sixty four thousand dollars 10 00:00:26,120 --> 00:00:29,400 Speaker 3: more at retirement from the rise in the super guarantee. 11 00:00:29,520 --> 00:00:31,680 Speaker 1: Not fad if you ask me, very good plus dam. 12 00:00:31,760 --> 00:00:33,159 Speaker 2: As it comes to the end of the month, it 13 00:00:33,240 --> 00:00:35,800 Speaker 2: is always the time to do your financial hygiene and 14 00:00:35,800 --> 00:00:38,599 Speaker 2: that means checking your credit score, tracking your budget, all 15 00:00:38,640 --> 00:00:40,280 Speaker 2: the important things to do at the end of the month, 16 00:00:40,320 --> 00:00:42,160 Speaker 2: and you can do it all in the Flucked app. 17 00:00:42,240 --> 00:00:44,239 Speaker 2: So make sure you gallow the app and check your 18 00:00:44,280 --> 00:00:46,920 Speaker 2: credit score to get your hygiene nice and clean. 19 00:00:47,280 --> 00:00:50,640 Speaker 3: Three marvelous stories today, juzzy boy, let's do it for 20 00:00:50,680 --> 00:00:54,160 Speaker 3: our first. The merger between Mighty Craft Beverages and The 21 00:00:54,200 --> 00:00:58,480 Speaker 3: Inspired Unemployed's Better Beer has fizzled out after Mighty Craft 22 00:00:58,520 --> 00:00:59,840 Speaker 3: fell into administration. 23 00:01:00,040 --> 00:01:01,800 Speaker 2: Jeez, not even the power of Jack Steel and Matt 24 00:01:01,840 --> 00:01:04,040 Speaker 2: Ford could stop this keg from running. Drive bey Man, 25 00:01:04,080 --> 00:01:04,880 Speaker 2: so tell me more. 26 00:01:05,440 --> 00:01:05,720 Speaker 1: Okay. 27 00:01:05,720 --> 00:01:08,480 Speaker 3: So, Mighty Craft is the ASX listed craft beer and 28 00:01:08,520 --> 00:01:13,240 Speaker 3: spirits manufacturer behind brands like Slipstream, Mismash Brewing and Kangaroo 29 00:01:13,240 --> 00:01:14,600 Speaker 3: Island Spirits and Sam. 30 00:01:14,640 --> 00:01:16,480 Speaker 2: If you haven't heard of these brands, it's not a 31 00:01:16,520 --> 00:01:19,840 Speaker 2: surprise because their craft drinks with very niche audiences. 32 00:01:19,959 --> 00:01:22,800 Speaker 3: But Jie Boy, Mighty Craft really struck gold back in 33 00:01:22,800 --> 00:01:26,640 Speaker 3: twenty twenty one when they agreed to manufacture Better Beer. 34 00:01:26,400 --> 00:01:28,880 Speaker 2: That's the zero car beer created by the Instagram and 35 00:01:28,959 --> 00:01:31,440 Speaker 2: TikTok comedians the inspired unemployee. 36 00:01:31,480 --> 00:01:33,840 Speaker 3: They have managed to grow Better Beer into twenty six 37 00:01:34,000 --> 00:01:36,200 Speaker 3: million dollars in annual revenue. 38 00:01:35,760 --> 00:01:38,880 Speaker 2: And Mightykraft had a frothy thirty three percent steak in 39 00:01:38,920 --> 00:01:39,560 Speaker 2: the business and. 40 00:01:39,640 --> 00:01:41,959 Speaker 3: Josie Boy, there were whispers that Better Beer and Mighty 41 00:01:42,000 --> 00:01:43,600 Speaker 3: Craft would actually merge. 42 00:01:43,280 --> 00:01:46,520 Speaker 2: But unfortunately, Mighty Kraft has now fallen into administration, and 43 00:01:46,560 --> 00:01:49,120 Speaker 2: it also means their merger with Better Beer has gone 44 00:01:49,200 --> 00:01:52,400 Speaker 2: out the window like the last swig of a very 45 00:01:52,720 --> 00:01:55,720 Speaker 2: warm beer and be man. It's mainly because the craft 46 00:01:55,720 --> 00:01:59,160 Speaker 2: beer industry has struggled to keep up with the increasing. 47 00:01:58,680 --> 00:02:00,840 Speaker 1: Costs interesting, So what is the key learning here? 48 00:02:00,880 --> 00:02:03,800 Speaker 2: The smaller businesses managing the cost of raw materials and 49 00:02:03,920 --> 00:02:07,360 Speaker 2: other operational expenses is crucial to survival. 50 00:02:07,080 --> 00:02:11,160 Speaker 3: Especially in industries with type profit margins like craft brewing. 51 00:02:11,200 --> 00:02:13,760 Speaker 2: And then then the broader craft beer market in Australia 52 00:02:13,800 --> 00:02:16,520 Speaker 2: has been under some serious pressure over the past few years. 53 00:02:16,560 --> 00:02:19,400 Speaker 3: Well, for one, Jazzy Boy, they've seen raw material costs 54 00:02:19,560 --> 00:02:20,239 Speaker 3: rise big time. 55 00:02:20,280 --> 00:02:22,359 Speaker 2: We're talking a jump of twenty five to thirty percent. 56 00:02:22,440 --> 00:02:26,440 Speaker 3: They've also seen a government excise tax increase on alcohol 57 00:02:26,520 --> 00:02:28,919 Speaker 3: and on top of that, many ozzy households have cut 58 00:02:28,960 --> 00:02:32,280 Speaker 3: back on spending, particularly on more expensive alcohol, because budgets 59 00:02:32,320 --> 00:02:35,320 Speaker 3: have been squeezed. So that's why we're starting to see 60 00:02:35,360 --> 00:02:38,720 Speaker 3: craft brewers either collapse or sell so just larger company. 61 00:02:38,760 --> 00:02:42,360 Speaker 2: We saw Southwest Brewery in Torquaye, Victoria go into administration 62 00:02:42,440 --> 00:02:42,720 Speaker 2: in May. 63 00:02:42,800 --> 00:02:44,920 Speaker 3: I think we also sought Temple Brewing, which is a 64 00:02:44,919 --> 00:02:48,080 Speaker 3: brewery in East Brunswick in Melbourne shutdown in May. So 65 00:02:48,200 --> 00:02:51,519 Speaker 3: jusey boy, it's a sobering reminder that in the world 66 00:02:51,600 --> 00:02:54,079 Speaker 3: of craft beer, it's not always happy hour. For our 67 00:02:54,200 --> 00:02:57,960 Speaker 3: second story, Mattel, the toymaker behind Barbie and Hot Wheels 68 00:02:57,960 --> 00:03:01,360 Speaker 3: has seen a share price skyrocket twenty after reports that 69 00:03:01,440 --> 00:03:04,320 Speaker 3: a private equity firm is looking to acquire it. Holy 70 00:03:04,600 --> 00:03:06,280 Speaker 3: Hot Wheels, that's all I can say. That would be 71 00:03:06,320 --> 00:03:08,359 Speaker 3: a huge deal, jussy boy. Go on tell me more. 72 00:03:08,600 --> 00:03:11,280 Speaker 2: Well, Mattel doesn't really need to be introduced, but they're 73 00:03:11,320 --> 00:03:15,400 Speaker 2: the toy company behind brands like Barbie, Hot Wheels, Fisher Price, Uno, 74 00:03:15,639 --> 00:03:18,359 Speaker 2: your Favorite Barney, and more than about fifty other brands 75 00:03:18,400 --> 00:03:20,680 Speaker 2: and the man at Mattel's share price went up big 76 00:03:20,720 --> 00:03:23,760 Speaker 2: time last year after the release of the Barbie movie. 77 00:03:23,480 --> 00:03:24,400 Speaker 1: Just Quietly, Juzzy Boy. 78 00:03:24,480 --> 00:03:26,480 Speaker 3: They saw a twenty two percent jump in their share 79 00:03:26,480 --> 00:03:29,800 Speaker 3: price after Margo Robbie sent Barbie into the stratosphere. 80 00:03:29,800 --> 00:03:32,560 Speaker 2: But be man, how one year can change things, because 81 00:03:32,600 --> 00:03:35,760 Speaker 2: this year there have been major concerns around Mattel's profitability. 82 00:03:35,800 --> 00:03:38,440 Speaker 2: In fact, it's share price was down twenty three percent 83 00:03:38,480 --> 00:03:39,680 Speaker 2: over the past twelve months. 84 00:03:39,720 --> 00:03:42,760 Speaker 3: But now there are reports that el Cadaton, the private 85 00:03:42,760 --> 00:03:46,360 Speaker 3: equity firm, has approached Mattel about a potential acquisition and 86 00:03:46,480 --> 00:03:48,960 Speaker 3: shareholders are loving this rum or, aren't they. The next minute, 87 00:03:48,960 --> 00:03:51,160 Speaker 3: their share price jumped twenty percent, and. 88 00:03:51,080 --> 00:03:54,680 Speaker 2: There's even more rumors that this acquisition approach will bring 89 00:03:54,720 --> 00:03:57,200 Speaker 2: more buyers to the table like their arch rival has. 90 00:03:57,240 --> 00:04:01,320 Speaker 2: Bro Nothing quite like strong competitive tension in an acquisition process. 91 00:04:01,360 --> 00:04:02,800 Speaker 2: So what is the key learning here? 92 00:04:02,920 --> 00:04:06,400 Speaker 3: Competitive tension is the pressure felt by a potential acquirer 93 00:04:06,520 --> 00:04:09,440 Speaker 3: when they are aware that there are multiple other parties 94 00:04:09,480 --> 00:04:11,880 Speaker 3: also trying to acquire the same company. And be Man, 95 00:04:11,920 --> 00:04:14,680 Speaker 3: it's fair to say that competitive tension is the purest 96 00:04:14,680 --> 00:04:16,080 Speaker 3: way to keep by his artist. 97 00:04:16,240 --> 00:04:16,600 Speaker 2: AH. 98 00:04:16,600 --> 00:04:19,000 Speaker 3: If you have a number of potential acquirers interested in 99 00:04:19,040 --> 00:04:21,599 Speaker 3: your business, it gives the company and its shareholders a 100 00:04:21,600 --> 00:04:23,800 Speaker 3: bit of a choice of exit options. 101 00:04:23,839 --> 00:04:25,800 Speaker 2: And be Man, competitive tension in the M and A 102 00:04:25,920 --> 00:04:28,599 Speaker 2: process can significantly increase the sail price. 103 00:04:28,760 --> 00:04:31,719 Speaker 3: Get this little stat Research at Columbia University was done 104 00:04:31,880 --> 00:04:35,000 Speaker 3: on seven hundred and eighty public US merger and acquisition 105 00:04:35,040 --> 00:04:38,800 Speaker 3: transactions from twenty four and twenty seventeen, and it found 106 00:04:38,920 --> 00:04:41,680 Speaker 3: that when there is competition among bidders for public companies, 107 00:04:41,680 --> 00:04:44,080 Speaker 3: it leads to an average of almost six percent on 108 00:04:44,160 --> 00:04:45,160 Speaker 3: the takeover price. 109 00:04:45,320 --> 00:04:47,680 Speaker 2: Wow. So be Man Mattel will be trying to bring 110 00:04:47,800 --> 00:04:50,240 Speaker 2: as many parties, as many toys to the table as 111 00:04:50,240 --> 00:04:52,479 Speaker 2: possible to get the best outcome for a shareholders. 112 00:04:52,640 --> 00:04:56,200 Speaker 3: For our third and final story, adultca in Cabana is 113 00:04:56,240 --> 00:04:59,080 Speaker 3: flirting with the idea of bringing in outside shareholders for 114 00:04:59,120 --> 00:05:01,400 Speaker 3: the very first time, either through a listing or through 115 00:05:01,480 --> 00:05:02,159 Speaker 3: other ways. 116 00:05:02,279 --> 00:05:04,839 Speaker 2: Geez, breaking away from just a familia for them, so 117 00:05:04,960 --> 00:05:05,560 Speaker 2: tell me more. 118 00:05:06,000 --> 00:05:09,240 Speaker 3: Dulcin Gabana is the Italian luxury fashion house that was 119 00:05:09,279 --> 00:05:12,880 Speaker 3: founded in nineteen eighty five by two designers, Domenico Dolci 120 00:05:12,960 --> 00:05:14,839 Speaker 3: and Stefano Gabana and Aman. 121 00:05:14,920 --> 00:05:16,920 Speaker 2: It's a brand that's been worn by the likes of Beyonce, 122 00:05:17,040 --> 00:05:20,280 Speaker 2: Scaliahans and Kylie Mino, Kin Kardashian and many more celebs. 123 00:05:20,520 --> 00:05:23,720 Speaker 3: While Dulcin Gabana generated more than one point eight billion 124 00:05:23,760 --> 00:05:25,760 Speaker 3: euros in revenue last financial year. 125 00:05:25,800 --> 00:05:28,479 Speaker 1: It's still owned by the two founders and their families. 126 00:05:28,040 --> 00:05:30,640 Speaker 2: But now Dolci and Gabana has said it's considering a 127 00:05:30,760 --> 00:05:31,800 Speaker 2: stock market listing. 128 00:05:31,920 --> 00:05:32,120 Speaker 1: YEP. 129 00:05:32,120 --> 00:05:36,040 Speaker 3: It's ready to consider opening its doors to third party investors. 130 00:05:35,560 --> 00:05:38,760 Speaker 2: But they've warned that they will not compromise the ethical 131 00:05:38,839 --> 00:05:41,440 Speaker 2: value of the company in order to secure financing. 132 00:05:41,520 --> 00:05:41,719 Speaker 1: YEP. 133 00:05:41,760 --> 00:05:43,320 Speaker 3: They even said, and this is something you never hear 134 00:05:43,320 --> 00:05:46,200 Speaker 3: in the corporate world. They want respectful growth. 135 00:05:46,000 --> 00:05:49,080 Speaker 2: Growth at all costs. Definitely not for the old Dolcian Gabana, 136 00:05:49,279 --> 00:05:51,120 Speaker 2: no Peruni. So what's the key learning here? When a 137 00:05:51,200 --> 00:05:54,280 Speaker 2: company's owners choose to bring in additional shareholders, they often 138 00:05:54,320 --> 00:05:57,880 Speaker 2: need to sacrifice creative control in exchange for shareholder profit. 139 00:05:57,920 --> 00:05:58,640 Speaker 2: You see Jazzi boy. 140 00:05:58,680 --> 00:06:01,760 Speaker 3: A private company like Dolchina that's owned by its founders 141 00:06:01,839 --> 00:06:03,839 Speaker 3: can choose at any given time what it wants. 142 00:06:03,720 --> 00:06:06,919 Speaker 2: To do, think investing in new releases, trying out new, creative, 143 00:06:07,040 --> 00:06:08,440 Speaker 2: controversial directions. 144 00:06:08,600 --> 00:06:11,839 Speaker 3: But a public company is obligated to its shareholders, and 145 00:06:11,960 --> 00:06:14,799 Speaker 3: often that means prioritizing profits. 146 00:06:14,400 --> 00:06:15,160 Speaker 1: Above all else. 147 00:06:15,279 --> 00:06:17,520 Speaker 2: This is the risk that dulceain Gabana runs if it 148 00:06:17,600 --> 00:06:18,640 Speaker 2: chooses to list and. 149 00:06:18,640 --> 00:06:21,120 Speaker 3: Jesse Boy, We've seen what happens when a fashion brand 150 00:06:21,120 --> 00:06:23,719 Speaker 3: gets caught in a tug of war between profit seeking 151 00:06:23,880 --> 00:06:25,720 Speaker 3: and maintaining exclusivity. 152 00:06:25,839 --> 00:06:27,360 Speaker 1: With good old Gucci Yep. 153 00:06:27,400 --> 00:06:30,000 Speaker 2: Gucci was acquired by Keering in nineteen ninety nine, and 154 00:06:30,040 --> 00:06:32,800 Speaker 2: its image is a luxury brand has slowly dropped. 155 00:06:32,520 --> 00:06:34,840 Speaker 3: So much so that Gucci's revenue in the first quarter 156 00:06:34,880 --> 00:06:36,960 Speaker 3: of this year is expected to be down by about 157 00:06:36,960 --> 00:06:37,680 Speaker 3: twenty percent. 158 00:06:37,880 --> 00:06:41,000 Speaker 2: So it's pretty fair of Dulchin Gabana to be wary 159 00:06:41,080 --> 00:06:43,359 Speaker 2: of losing sight of its priorities if it chooses to 160 00:06:43,400 --> 00:06:45,800 Speaker 2: raise external capital. Flux fan, did you know sixty six 161 00:06:45,839 --> 00:06:48,240 Speaker 2: percent of Australians do not know their credit score? And 162 00:06:48,279 --> 00:06:50,320 Speaker 2: if you're thinking right now, that is me to get 163 00:06:50,320 --> 00:06:52,520 Speaker 2: out of that sixty six percent. Download the Flux app 164 00:06:52,560 --> 00:06:53,679 Speaker 2: and check out your credit score. 165 00:06:53,720 --> 00:06:56,040 Speaker 1: Thanks for listening and we'll see you on Friday