4Swiss and Morele

Building a transaction model acceptable to all parties.

Retail & Commerce

Industry

sprzedaż + konsolidacja

Transaction type

Poland

Field

Challenge

Context

4Swiss is a brand in the small domestic appliance segment, offering premium products of high quality and attractive prices. The company was growing rapidly, but in recent years, the cost of customer acquisition in e-commerce had increased significantly, limiting the pace of scaling.The founders – along with three financial investors – were looking for a partner who could take over the brand, reduce operating costs through economies of scale, and ensure further, faster growth.Internal concerns arose:

how to manage the process with multiple shareholders,
how to avoid mistakes in negotiations,
how to protect the interests of both founders and investors,
how to find the right investor in a short time.

The key challenge was building a transaction model acceptable to all parties, especially in the context of negotiations conducted during the most challenging period for e-commerce: from Black Friday to Christmas.

Process

How we conducted the transaction

VenturePackt began working with the owners in August 2023 and set an ambitious goal:

to close the transaction within six months, ideally in 2023.

The scope of work included:

Verification

Weryfikację wartości spółki i oczekiwań udziałowców

Information materials

Preparation of information materials (teaser, deck, financials),

Identification of investors

Identifying potential investors and starting talks

Negotiations

Conducting negotiations, mediating and explaining the intentions of the parties

Proposed solution

Developing a transaction model and structure

Supervision of the process

Coordination of the process until the documents are signed

The process required aligning the interests and expectations of many people: the investment fund, individual investors, the founders of 4Swiss, and the management of morele.net.Ultimately, VenturePackt conducted a full operational and marketing analysis, prepared the transaction structure, and supported the parties in harmonizing the contractual provisions and building the foundation for further cooperation.Crucially, we managed to complete the entire transaction in 4 months, which is 2 months faster than planned.

Effect

Connection results

The transaction led to the merger of 4Swiss with Morele.net, backed by MCI, creating a stronger operational, technological, and sales structure.

Thanks to economies of scale and integration:

Extensive infrastructure

The brand gained access to a wider e-commerce infrastructure,

Cost optimization

Operating costs have been optimized

Scaling

The way has been opened for radical scaling of operations

Results

All parties – founders, investors and buyers – achieved favorable transaction outcomes.

This is an example of a process in which good cooperation, effective mediation and precise management of stakeholder expectations played a key role.

“The 4Swiss transaction was challenging due to the number of stakeholders, varying expectations, and time pressure. In such a situation, it was crucial to organize the data, properly understand the business value, and develop a structure acceptable to everyone.

Thanks to the precise management of the process, we managed to close the transaction faster than expected, without compromising quality. This is a good example of how efficient management of information and the expectations of the parties accelerates the entire M&A process and leads to a satisfactory outcome.”

Krzysztof Kościukiewicz

Partner, Venturepackt

“Building understanding between multiple parties with different needs and emotions was crucial in this transaction. When owners, investors, and buyers have different perspectives, the process becomes primarily a dialogue, not just a financial analysis.

Our role was to mediate difficult moments and create a space where decisions could be made with a sense of security. This is an example of a transaction in which people and relationships are as important as the numbers.”

Krzysztof Murzyn

Partner, Venturepackt

“The process was particularly challenging because, in addition to us, there were financial investors at 4swiss. The challenge was reconciling the interests of all three parties.

We knew we were facing a profit-out and would have to remain in the project. The discussions were difficult, and in retrospect, it was a good thing that Venturepackt was in the middle, connecting and communicating the interests of both parties, managing the process and emotions, which were crucial from the perspective of the established model.

As a result, after the transaction, we became a single entity that will operate under the new model for years to come. All parties feel confident that the transaction was a success.”

Eliza i Marcin Pawełczyk

founders of 4Swiss

Media