Why do American brands see a valuation spike when they enter Europe? We analyze case studies like Ralph Lauren and Olly to show how unlocking the European market acts as a massive lever for company value.
The “Europe Unlock”: How Global Expansion Drives Valuation
For US-based D2C brands, the domestic market is a fierce red ocean. CAC is rising, and growth is slowing. Yet, many hesitate to cross the Atlantic. They fear the complexity: VAT compliance, translations, fragmented logistics.
At Oratio, we view this complexity as a moat.
The Arbitrage of Expansion When a US brand successfully enters the European market (specifically UK, Germany, and France), two things happen to its valuation:
- TAM Expansion: You instantly double your Total Addressable Market.
- Risk Diversification: You are no longer reliant on a single economy.
Case in Point We have seen aggregators and VC firms pay a premium (often 2x-3x higher EBITDA multiples) for brands that have proven “portability.” A brand that works in Ohio and Bavaria is a brand with a universal value proposition. A brand that only works in Ohio is a local risk.
The Oratio Approach We handle the “unsexy” backend—fiscal representation, localized customer service, pan-European FBA—so you can focus on the brand. Don’t leave valuation on the table because you are afraid of German tax law. That’s our job.