La Bay Distillerie Californienne - Busines Plan

[Shadi Saroufim]

Good morning, I am going through my distillery valuation. Any thoughts on current EBIDTA multiples for exit? Any precedent transactions i can use for reference? Thank you in advance for your inputs.

[Foreshot]

Depending on how you operate: Are you mostly local sales? Bar sales? How much distribution do you have? If you do a search for valuations you'll find several threads on this. The wider reach you have the better the multiple you can justify. Distilleries are quite hard to value. A good rule for a smaller distillery would be similar to a restaurant/bar. A larger one with good distribution follows manufacturing. Mostly simply - 1x Sales or 3-5x earnings. It's pretty hard for any smaller business to get outside those bounds.

The best advice that I can give you - no experienced investor is going to care about your valuation. They will come in with their own and you'll have to defend your position. They will know that with local only sales growth will stop. They will also know that distribution agreements are incredibly risky and can collapse overnight. They also know they are paying for what the company is now, not in the future. As an investor any "potential" would get priced out as they know they will have to achieve that growth.

[Will Whalen]

Hi @Shadi Saroufim, just PM'd you. Hope my knowledge can help.