Hey everyone, we've been receiving several common questions regarding the financials of our company. I wanted to take the opportunity to shed some light on our current, past and projected financials as well as how they impact the valuation of our business.
Using our interim financials we projected our 2018 revenues to be:
1) Direct to consumer (DTC) sales - Distillery - $870,368.86 (Growth of 54.42%)
2) DTC sales - Outer Sunset Taproom - $808,439.12 (Growth of 107.47%)
3) Distributed Whiskey Sales - $334,097.68 (Growth of 67.57%)
4) Distributed Beer Sales - $1,372,694.76 (Growth of 4,992.4%)
The majority of recent brewery acquisitions have been valued using the following calculations:
Gross Earnings * Multiple Valuation = Implied Enterprise Valuation
Implied Enterprise Valuation - Debt = Pre-Money Valuation
A 6x multiple valuation is the lowest valuation we would entertain when considering a strategic partnership. Using this number we would calculate our valuation as:
2017: $1,179,654.05 * 6x = $7,077,924.30 - $580,609
Implied Enterprise Valuation = $6,497,315.3 + Kilroy Contribution ($1,210,090) = $7,707,405.30 Pre-Money Valuation
2018: $3,529,600.42 * 6x = $21,177,602.52 - $580,609
Implied Enterprise Valuation = $20,596,993.52 + $1,210,090 = $21,807,083.52 Pre-Money Valuation
2019: $13,260,208.85 * 6x = $79,561,253.10 - $580,609
Implied Enterprise Value = $78,980,644.10 + $1,210,090 = $80,190,734.10 Pre-Money Valuation
*Please note that EBITDA is not commonly used in determining valuation for the brewing industry
**Kilroy Contribution denotes the Tenant Improvement Allowance provided for 100 Hooper
***Assets, including aging inventory are not reflected in this calculation
If you are considering investing please feel free to contact me at firstname.lastname@example.org with any additional questions. If you have already invested thank you for your support and please continue to send us your referrals!
CEO, Seven Stills
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