MDM GROUP AG intends to put forward for IPO

MDM GROUP AG’s IPO will now take place in the second quarter of 2017 and not at the end of the year. The company aims to generate fresh capital by going public, which will allow it to invest additional funds in merchandise trading. Private investors will also be able to easily benefit from the company’s business model.

High revenues are generated in the retail sector in Germany every year.

Gross profit margins are particularly interesting for investors.They often take profits on an average of 30 percent. MDM GROUP AG operates in this market segment. Specifically, the group mostly trades in textiles, remainders, specialty items, and merchandise from insolvency proceedings. MDM GROUP AG has already achieved high profits in this segment.

In the international retail segment, the company’s revenues have grown by around 400 percent just in the last two years. The company can already achieve profits by making favourable purchases. The merchandises, such as textiles, remainders, specialty items, and goods from insolvency proceedings from many top manufacturers are bought in at very favourable conditions.

Due to the high purchasing volumes savings of up to 90 percent compared to the regular wholesale price are customary. In addition to low purchase prices for goods, in 2017 the company is also planning to purchase two top textile brands which will extend its product offerings even further and will also allow the group to influence market-prices directly.

Thanks to its unique distribution network, the company is able to resell the purchased goods in a short period of time. In this regard, the group works together with a large number of online distribution partners and can thus always select the most efficient marketing channel for the products.

This allows the company not only to realize a quick turn over of goods, but also to realize a maximum amount of sales revenues. The MDM GROUP purchases and sells goods every month, thus turning over the invested amounts several times.

Profits can be realized with every transaction. The company does not receive investments from bank loans, but via subordinated loans. Private investors can lend money to the company and receive interests in return. The interests are fixed and agreed in advance and currently total nine percent according to the company’s information. Interests up to 20 percent are even possible for special programs.

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