We provide the following services to beverage distributors:
Advisory Services
* Business Valuations
* Transaction Services
* Purchase and Sale of Businesses and Brand Rights
* Operational Analysis and Benchmarking
* Strategic Review and Analysis
* Estate Planning and Ownership Succession
* Supplier and Distribution Agreements Review and Consents
* Development of a Diversified Portfolio Strategy and Product Mix
* Brand Realignment Initiatives
* Litigation Support and Brand Terminations
* Access to Equity and Debt Capital
Valuations
We consider many different valuation methodologies depending on a company’s specific circumstances. Typically we rely on the Free Cash Flow (FCF) methodology to value a business or brands, based on projections of FCF for a discrete period and in perpetuity.
It starts with understanding value. What is the standard of value? What are the drivers of value? The standalone value based on the way a business is currently being operated may be very different than the investment value based on the way a business could be operated in consolidation.
Value is driven by many variables and projections for the future. Key drivers are of value include: investment, profitability, growth, and the discount rate. It is important to understand franchise protections, supplier and distribution agreements, and operating agreements. Value may also vary by territory and types of beverages.
Beverage distributors and suppliers continue to consolidate and cross lines. The big are getting bigger. Companies are expanding into “total” beverage distributors with a diverse portfolio of alcoholic and non-alcoholic beverages. Companies are expanding across territories, state lines, and continue to blur the lines between types beverages. Private equity companies want to invest more.
We can help you navigate these dynamic changes. Please contact us in strictest confidence.
II Advisory 