BUSINESS & BRAND VALUATIONS
In valuing a business, we develop realistic projections of "Free Cash Flow" with a high level of confidence in the assumptions that are used to model the business. Our method equates the value of the enterprise to its future cash flows, based on an appropriate investor "hurdle rate." Franchisors and lenders use the same or a similar method to value companies for purchase, sale, merger, or credit decisions.
Clients have included Coca-Cola Bottlers, distributors of all major brands internationally, in sizes ranging from 1 million annual unit case volume to over 200 million unit cases. We work closely with your senior management, attorney, CPA and other professional advisors in furnishing appraisals for the following purposes:
- Buying or selling the business or brand rights
- Stockholder buy-sell arrangements
- Mergers
- Owner and Family succession
- Divorce proceedings
TRANSACTIONS
We have assisted owners in the management of over 40 transactions, including Bottlers and Distributors of all of the major suppliers, and soft drink bottlers.We will give you a valid calculation of the intrinsic value of brand and sale distribution rights, without relying on arbitrary price-per-case ratios or multiples of EBITDA and/or gross profit. These ratios are useful as a "reality check." However, they cannot be used to calculate the value of businesses and brand rights.
Whether our client is a seller or a buyer, AICG offers the following services to assist in managing the transaction:
- Determine a range of values for the business
- Respond to supplier’s information request
- Prepare a Confidential Informational Memorandum for the seller
- Contact potential buyers for the seller
- Advise buyer in acquiring a distributor
- Negotiate the purchase price
- Draft the Letter of Intent
- Negotiate the Definitive Agreement
- Assist in obtaining acquisition financing for the buyer