How do family logics influence the financial options available to Two Seasons?

Option One: Trade Sale to Billabong Billabong, a producer of sport clothes and apparel, offered Stuart 2.5 million for Two Seasons. To assess if this was suitable, Stuart undertook researched benchmark information based on Sports Direct, a similar but much larger competitor (see Exhibit Nine). Billabong's rational for purchasing Two Seasons was clear. As a large Australian multi-national eager to extend their reach into the UK, Two Seasons offered Billabong a ready-made retail platform for their sports clothing and equipment. Billabong knew that Two Seasons was well-regarded by its customers and that they could build on its established footprint of thirteen stores by opening further stores in other parts of the UK. Billabong also recognised that there were on-going changes in how sports equipment and clothing was being retailed. The retailer, Sports Direct International, had integrated its supply-chain by acquiring suppliers like Kangol. This backward integration increased profit margins because there was no need to pay intermediaries. If Billabong could buy Two Seasons, this would allow for forward integration and potentially lead to increased profits. For example, instead of only selling six per cent of their goods through Two Seasons, they might be able to increase this to fifty per cent. Finally, if they did buy Two Seasons they could make it a condition of the sale that Stuart and his team would have to stay in post for three years to smooth the business transition. This would help Billabong because they had limited retail experience in the UK. Stuart could see the advantages of selling out to Billabong. They had the logistics, finance and brand to make it work. He belleved that he could lead Billabong into making the transition to being a major player in the UK. As the shareholder with the biggest stake in the business (Exhibit Two), it would also give him and other family members a sizeable payout that could allow them to meet their aspirations. In particular, it would give his parents the chance of a more comfortable retirement, something that Stuart felt was important given the huge support they had given him over the years.