The turnaround brought many changes to the company's operations and focus, but the question remained: How would this translate into financial gains for major shareholders? This chart from a Goldman Sachs report on J Crew versus other industry players paints a depiction of J Crew's outperformance versus not only the S&P 500 Index but also Specialty Softlines which includes companies like Ann Taylor and Gap. While the recession had negatively impacted the entire industry, J Crew managed to emerge from the 2007 takeover and recession by posting above-average growth. After the first 3 years of turnaround, the company has 451 stores and approximately $2.4 billion in annual sales. , J. Crew could reach a valuation of up to $5 billion. Second buyout When TPG returned to take J Crew private a second time with Leonard Green, there were some issues regarding Mickey Drexler and shareholders receiving a fair price, but the deal came to $43.50 per share, or about 3 billion dollars. As before, Drexler would be at the forefront of operations and retain a significant portion of the capital. Exit Prospects Rumors have described the potential for an IPO as early as 2014. Given that the average life of PE funds is five years, it would make sense that TPG would want to use a 2014 IPO as an exit. The timing of the IPO would be critical as TPG allows the market to determine the company's valuation. With revenues steadily increasing, net profit appears to be suffering and this could be an obstacle to good performance after an IPO. After a negative holiday season, numbers are expected to decline, but negotiations for the IPO towards the end of the year are still ongoing. There were also negotiations about......half of the document.... ..you. Bringing in Mickey Drexler to revitalize the brand and focus its strategy was key to creating a sustainable business model that could compete with much larger players like LL Bean and Talbots. Quality, style, scarcity and creativity were the pillars of Drexler's turnaround. Redefining each of these principles has allowed J Crew to brand itself as a high-end fashion line focused on appealing to a very particular segment of consumers. And so as not to dilute that pool, J Crew has managed expansion through new geographies and a limited number of additional clothing lines. The turnaround was an opportunity for Drexler to redeem Gap's poor performance during his tenure as CEO. Through various initiatives he has managed to transform J Crew into a $5 billion company, recognizing significant returns for himself and TPG.