Enterprise Value Targets
Five-year value creation roadmap for DratLink Capital board
Deal Value
£20M
Current Revenue
£49.7M
Current EBITDA
4.8%
Y5 Revenue
£80-100M
Y5 EBITDA
7-8%
Exit Horizon
5-7 years
Value Creation Bridge
Revenue Growth10-15% CAGR
EBITDA Expansion+200-300 bps
Exit ScenarioStrategic sale or IPO
EBITDA Improvement Levers
- E-bike mix: Higher margin products
- Online channel: 5% → 15% (no retail margin)
- Lean manufacturing: Operational efficiency
- Sourcing: Negotiated supply contracts
Deal Structure
DratLink Equity£10M
Seller Note (4-yr)£10M
First Payment (June Y1)£3.4M
Exit Value Drivers
E-bike ExposurePremium multiple
Geographic DiversityRisk reduction
ESG/SustainabilityStrategic appeal
Brand Heritage150-year value
Key Risk: EBITDA gap requires execution on e-bike launch and operational improvements simultaneously.
Product & Go-to-Market Strategy
CYLO X: E-Bike Launch (Priority 1)
Market Share
51%
Target Price
$1,950
Positioning"Light, Beautiful, Smart"
Specs250W, 20mi, carbon
R&D Investment£200k
Launch Timeline18-24 months
Y1 Revenue Target5-15%
Product Portfolio Stack Rank
1. CYLO X (E-bike)INVEST
2. Race (£845/unit)GROW
3. Road (£14.96M)MAINTAIN
4. MTB (£12.18M)MAINTAIN
5. Children'sEVALUATE
6. City (low margin)RATIONALIZE
Channel Strategy
Retail Partners (Current: 95%)
- Halfords (UK) - negotiate credit terms
- Decathlon (Germany) - expand range
- REI (USA) - premium positioning
- Zweirad (DACH) - new partnership
Online D2C (Target: 15%)
- Own website relaunch
- Amazon marketplace
- Higher margins, direct data
New Market Expansion
Global Market
$83.5B
APAC Share
48%
E-bike CAGR
12.76%
Current UK
23%
Current Germany
16%
Current USA
12%
Geographic Expansion Priority
1. Central Europe (DACH)PRIORITY
2. NordicsY2-3
3. Japan/KoreaY3-4
4. Australia/NZY4-5
Central Europe Strategy
- Zweirad partnership: Distribution deal signed
- E-bike focus: Germany = #1 EU e-bike market
- Premium positioning: British heritage appeal
- CBAM advantage: UK assembly vs Asian imports
Zweirad Deal: 500 units initial order. Potential to 2,000+ units/year with e-bike launch.
APAC Long-Term Opportunity
Market Size$40B (48%)
E-bike Growth15%+ CAGR
Entry ModeDistribution partner
Target MarketsJapan, Korea, ANZ
Market Entry Requirements
Regulatory (EU/APAC)Certification
Distribution Setup£100-150k
Local Marketing£50-75k/market
Service NetworkPartner-led
5-Year Target: Reduce UK dependency from 23% to <20%. Grow Germany to 25%+. Enter 2-3 new markets.