Unilever recently purchased the company Dollar Shave Club for an astonishing $1 billion. This is way more than the Club is worth - it provides a convenient service for those who need or like to shave, but that doesn't mean that the cosmetics giant Unilever should have spent that much to acquire it.
If Univlevers plan is to run the Dollar Shave Club out of business, they did the best thing they could buy paying so much for Dollar Shave Club. If they plan to keep the current model, it will still make a great deal of money for Unilever and they will get their investment back.
No, I don't feel Unilever overpaid for the Dollar Shave Club, even if the price tag was one billion dollars. That's because the Dollar Shave Club is very popular. Unilever has acquired an established business with a substantial membership and an enormous email list. In today's marketplace, these are very valuable acquisitions.
I don't think that Unilever overpaid in purchasing Dollar Shave Club. Sure, it was a ton of money, but it was a good investment. Dollar Shave Club has skyrocketed in popularity. There is a lot of buzz about this company in my social circles, so the company is worth what Unilever paid for it.