The Honest Company
According to Bloomberg (1), Unilever PLC has initiated talks with The Honest Company with the intent of buying the company. The amount for the purchase is rumored to range in between 1 billion and 1.7 billion dollars. However, the negotiations to buy are still in eats early stages and The Honest Company has not ruled out the possibility that it will not go for a public offering instead of the deal by Unilever PLC. The reason behind selecting this article is because it talks about an opportunity that could help The Honest Company in various ways such as Marketing, increasing the number of clientele and expansion into new markets (Bloomberg 1). This is important because if the purchase occurs, The Honest Company will greatly benefit from the financial support and income generated from being associated with a company as large as Unilever Company.
The element in the financial news that has the most significance to my life is the information of the intent by Unilever Company to Purchase The Honest Company. Since The Honest Company deals with products such as bath, body, baby and health products, it will greatly benefit from the skills and expertise Unilever Company has gained through experience over the years (Bloomberg 1). The Honest Company has had to settle various lawsuits related to the quality of its products. Partnering with a company like Unilever will help not only to improve the quality of its products and marketing skills, it will also increase the number of customers since Unilever Company had a large number of loyal customers (Bloomberg 1). The merger itself will therefore have the most potential to create the most benefit as it will give The Honest Company the marketing skills and customer base needed to give a competitive advantage. This will boost the sales and may even change the negative image that people may have of The Honest Company
Work cited
Bloomberg, “Unilever reportedly in talks to acquire The Honest Company” 2016, retrieved from, http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=140952960
