Opened my copy of Design Week to find out Charlie Hoult's Loewy Group had bought another top-name design company. Where's he getting all his VC money from? Would love to know!!

Do you think he'll tell us in October?

There's no big secret about where the money comes from. The first £12m was from a bunch called Veronis Suhler Stevenson, and the latest chunk is from Abry. They now have £8m each.

Strangely though, I think we might be asking the wrong question! The money is easy to get because you can always find backers for a decent idea. And the acquisitions are easy because they have cunningly harnessed the appeal of the Loewy name - designers will go for this over pure cash every time.

You're saying that people like Seymour Powell will sell up because they like the idea of sitting under the Loewy banner? I've heard it's about the ownership structure, which is something I'm really interested to get the lowdown on.

That's my opinion, yes. Look at these gushing quotes:

Richard Seymour comments: “It’s very rare that opportunities like this come along; to help forge a new and potent creative force with real brilliance, energy and insight as its propulsive core. Raymond Loewy virtually invented product design as we know it, from a mixture of engineering, ‘commercial art’ and a dash of poetry. Now the Group has the opportunity, and the potential, to set the agenda all over again…”

Dick Powell comments: “This feels like the completion of a circle – as a schoolboy, it was Raymond Loewy’s work that first enthused me about Industrial Design! We had been striving for some time to secure the long-term future of the business, so moving forward with Loewy gives us a solid foundation for future growth. I don’t think Seymourpowell has ever stood still; we have constantly evolved what we do and how we do it - and that’s not going to change . . . it’s just that now, as part of Loewy, we’ll be doing it together.”

Seymour Powell have had plenty of offers before and rejected them. Now they have sold, in my opinion, rather cheaply. Depending on your orientation, they are to be respected for paying more attention to cultural issues than financial. The "string of pearls" concept allows them to realise a few bob whilst being left alone to do their thing - something that designers value hugely.

I'm not sure I believe all those gushing quotes. I understand that the Loewy brand, despite its heritage, had become a little tired before Charlie Hoult took it on.

I think the 'string of pearls' analogy in your final paragraph is more revealing. If Seymour Powell were able to realise a decent cash sum for their business, and retain their own brand name, and join a group that promised real cross fertilisation with other successful high-end agencies, and shares in the new Loewy, that would have more appeal. Charlie Hoult's 'light touch' was apparently a key factor. I imagine Seymour Powell are hoping that inside the group they'll grow faster and share in Loewy's collective success.

Charlie's challenge will be getting the partners to collaborate rather than compete. So far the economic climate has been relatively benign. If things turn chilly (which is starting to look possible) that could test the Group's organisational principle. His leadership will be crucial.

I couldn't have put any of this better myself, but...

...the money's not that easy.... the merger deals aren't that easy...

The secret, if there is any, is listening and learning from the many people who want us to succeed in bringing together a design supergroup.

Dick Powell comments: “This feels like the completion of a circle – as a schoolboy, it was Raymond Loewy’s work that first testking 70-293 enthused me about Industrial Design! We had been striving for some time to secure the long-term future of the business, so moving forward testking RH302 with Loewy gives us a solid foundation for future growth. I don’t think Seymourpowell has ever stood still; we have constantly evolved what testking 352-001 we do and how we do it - and that’s not going to change . . . it’s just that now, as part of Loewy, we’ll be doing it together.”

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