Mountain Warehouse - Vendor Due Diligence


About the brand

Mountain Warehouse, founded in 1997, is the largest outdoor retailer in terms of UK store numbers (c.250 stores). The business achieved turnover of c.£185m in 2016, with products delivered to more than 100 international markets. EBITDA improved 25% YOY to £25m

Mountain Warehouse Outdoors

The Challenge/Task

Pragma has supported the business numerous times, completing a number of commercial and vendor due diligence assignments for the company and its sponsors. Most recently, Pragma was commissioned by Mountain Warehouse as part of an evaluation process associated with the potential for external investment in the company.


  • Undertook a comprehensive programme of consumer research, comprising a market survey, exit survey, competitor intercept interviews and focus groups

  • A review of the competitive context in which Mountain Warehouse operates

  • A robust evaluation of the achievability of management’s business plan through management interviews, trading analysis and financial model review. Pragma also identified additional areas of opportunity for the business in the UK and in international markets

  • A detailed assessment of the historical, current and forecast performance of the outdoors retail market in the UK. Key areas of focus included market growth and evolution, key trends, the competitive landscape and changing consumer demographics / behaviours

We are scaling new heights, in our stores, online, and increasingly overseas. We have delivered another record-breaking year helped by the UK cycling craze. We have continued to thrive in a challenging UK retail environment, demonstrating that high-street retail can succeed so long as you have the right products at the right price.
— Mark Neale, Chief Executive (May 2015)

The Result

Pragma’s findings were instrumental in providing commercial context and understanding for potential investors in the business. In the latest transaction, Mountain Warehouse management took full ownership of the business from LDC in a deal worth 10x EBITDA.