The turnaround brought many changes to the company's operations and direction, but the question remained: how would this translate into financial gains for the largest shareholders? This chart from a Goldman Sachs report on J Crew relative to other industry players presents a depiction of J Crew's outperformance relative to not only the S&P 500 but also Specialty Softlines which include companies like Ann Taylor and Gap . While the recession had clear consequences for the entire industry, J Crew was able to emerge from the acquisition and recession of 2007 to see 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 BillionSecond BuyoutWhen TPG came back to take J Crew private a second time with Leonard Green, there were issues regarding Mickey Drexler and shareholders receiving a fair price, but l The deal resulted in $43.50 per share. , which equates to around $3 billion. As before, Drexler would be at the forefront of operations and retain a significant portion of equity. Exit Prospects Rumors have raised the possibility of an IPO as early as 2014. Given that the average lifespan of a private equity fund is five years, it would make sense that TPG would want to use an IPO in 2014 as a release. The timing of the IPO would be crucial because TPG allows the market to determine the company's valuation. While revenues are growing steadily, the bottom line appears to be suffering, which could be a barrier to strong performance after an IPO. After a poor holiday season, one might expect numbers to drop, but negotiations for an IPO towards the end of the year are still ongoing. Discussions also took place regarding middle of paper.... ...you. Bringing in Mickey Drexler to revitalize the brand and focus its strategy was fundamental to creating a sustainable business model capable of competing with much larger players like LL Bean and Talbots. Quality, style, rarity and creativity were the cornerstones of Drexler's turnaround. Redefining each of these principles allowed J Crew to present itself as a high-end fashion line that focused on attracting a very particular segment of consumers. And so as not to dilute this pool, J Crew has successfully expanded into new geographic areas and a limited number of additional clothing lines. This turnaround was an opportunity for Drexler to redeem himself from Gap's poor performance during his tenure as CEO. Through various initiatives, he successfully grew J Crew into a $5 billion company, realizing significant returns for himself as well as TPG..