Can and Will Rolex ever be sold?

[L_S_SHOE]

Rolex seems to be in a good place, financially, so I’m not sure why they’d want to sell out. I say that only because they’re selling just about every watch they make, and quickly. So unless they’re poorly managed, they’re probably doing fine. Are there controlling stakeholders that would stand to make huge sums of money if they sold? I don’t know. If so, then obviously the equation changes.

The same can’t be said for Tiffany’s.


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[Sgtmax]

Originally Posted by GoingPlaces

Never happen. Rolex is set up as a foundation.

THE CORRECT ANSWER

[porschejeff]

Never say never. LVMH is acquiring Tiffany for $16 Billion.

[nocaps]

could you imagine a more cushy job than being a director at rolex sa? working for an iconic brand, with lavish benefits, that has no outside investors to answer to? even if it were possible to sell the company, why would they want to?

[Tangier11]

I have to go along with the never say never..

[GB-man]

I am just spit balling but I think Rolex is worth significantly more than 10B

[Billfish]

Hans made sure the company was set up to remain what it is today. Better chance of all AD's having fully stocked cases of SS's by tomorrow than Rolex changing hands

[77T]

Comparing Rolex and Tiffany on valuation is very difficult.

Tiffany has almost no direct comparison except for its luxury brand name recognition in jewelry rivals Rolex’s name recognition in watchmaking. Tiffany sold out years ago to attract customers with $125 keychains. 2018 revenue was $4.4 billion.

Rolex has brought more and more of their manufacturing in-house. This has capped its revenue model based on production limitations. But if you extrapolate that production at 65% of MSRP you’d reach $10-15 billion easily.

Tiffany’s manufacturing includes third parties overseas. It can turn up the volume at will. But the market doesn’t snap up every trinket each year. So the folks using the Disney/Star Wars analogy may be onto something. LVMH could further cheapen the Tiffany brand to chase profits.

Back to Rolex, I agree that the foundation is 99.999% untouchable in a takeover attempt. But I believe a $40-60B valuation is possible.



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[Chewbacca]

Originally Posted by GoingPlaces

Never happen. Rolex is set up as a foundation.

22 posts before your answer.

(Jeebus)

[brandrea]

Originally Posted by 77T

Comparing Rolex and Tiffany on valuation is very difficult.

Tiffany has almost no direct comparison except for its luxury brand name recognition in jewelry rivals Rolex’s name recognition in watchmaking. Tiffany sold out years ago to attract customers with $125 keychains. 2018 revenue was $4.4 billion.

Rolex has brought more and more of their manufacturing in-house. This has capped its revenue model based on production limitations. But if you extrapolate that production at 65% of MSRP you’d reach $10-15 billion easily.

Tiffany’s manufacturing includes third parties overseas. It can turn up the volume at will. But the market doesn’t snap up every trinket each year. So the folks using the Disney/Star Wars analogy may be onto something. LVMH could further cheapen the Tiffany brand to chase profits.

Back to Rolex, I agree that the foundation is 99.999% untouchable in a takeover attempt. But I believe a $40-60B valuation is possible.



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Interesting valuation guesstimate ...

Thinking out loud here but if each member of TRF could pony up about 200 K we could put in an unsolicited bid

[JUSTIFIED]

I don't ever see this happening. What would be the incentive? They have zero debt, make an s-load of money and have one of the most prestigious and historical brands of all time. They are the 800 lb Gorilla of the watch market. Sell? Nah... just keep dominating and carrying the torch.

[locutus49]

Is Tiffany a financially sound foundation? I thought not.

Originally Posted by porschejeff

Never say never. LVMH is acquiring Tiffany for $16 Billion.

[Tha Baron]

Originally Posted by psv

It is never being sold to a private profit-making company.

Well... Rolex is private. Rolex makes a profit. Rolex is a company.

[RyanJ]

Originally Posted by Tha Baron

Well... Rolex is private. Rolex makes a profit. Rolex is a company.

Yep. Rolex SA is owned by a foundation. Rolex SA is absolutely a for profit company. Yes portions of profits go to charitable organizations.

[Devildog]

Originally Posted by inadeje

I would say that at one point the company will be taken public. IPO. It will depend on whether this was prohibited by Hans Wilsdorf in the company’s bylaws or mems&arts

But why?

The entire point of taking a company public is not something the foundation needs to do.

It goes against the very essence of why the foundation exists.

It’s trustees wouldn’t benefit. Only the trust





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[jimcameron]

Rolex approached Invicta asking if they would consider purchasing a share of the Trust. Invicta turned them down.

[padi56]

Originally Posted by GoingPlaces

Never happen. Rolex is set up as a foundation.

The name Rolex came from the phrase “Horologies D Excellence” meaning “watch making of excellence.” The name Rolex was easy to pronounce in any European language and was short enough to fit on the dial of the watches.

Exactly that Rolex is a foundation and cannot be owned, bought or sold to anyone for any price. The company is set up in such a way that it continuously perpetuates its existence through properly allocated funds into research and development but they do still make a large profit just like any other business to survive.

Hans Wilsdorf, the founder of Rolex, was orphaned at age 12,he spent the rest of his teenager years in an orphanage. He later began to work for a watch exporter in Switzerland,then went on to found RWC now just Rolex as we know it today.

Hans Wilsdorf and his wife owned orphanages in Switzerland and donated profits of the company to various charities and orphanages. To this day a large share of the profits go to charities and the Rolex Awards for Enterprise but they still make a company profit to stay in business..

[HogwldFLTR]

Interesting question; the short answer is "no;" the long answer is anything can be sold.

[Buzzlite]

Rolex can never be sold or to be gone public.

It was set up as a trust, there is laws protecting the Rolex brand. It can never be sold. It was hans dieing wishes for it to be put into a trust. Unless hans came back to life it can never be undone.

[iliketime]

Patek Phillipe may go before Rolex at this rate

[jsausley]

Originally Posted by iliketime

Patek Phillipe may go before Rolex at this rate

The rumor was that LVMH targeted PP last year and attempted to buy them, but was turned down.

[Overwound]

Originally Posted by huncho

would be interesting to see how many people would still want daytonas/blro's/etc if they were readily available with discounts

I don't want the Rolex brand to be sold but it would be nice to shed off the speculators and have a forum of true watch enthusiasts.