HUNGRY. The £100m Brand Man: 17 Unknown Ways To ACTUALLY Secure a HUGE Exit + “the EXIT world has COMPLETELY changed… Multiples of revenue is DEAD”
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Feb 3, 2025 Giles Brook, an industry legend in the food and drink sector, shares invaluable insights on securing lucrative brand exits. He emphasizes the urgent need for challenger brands to pivot from revenue multiples to EBITDA metrics. The conversation dives into the importance of true gross margins and the impact of strong branding on exit strategies. Giles also highlights innovative marketing tactics and the necessity of building a coherent value chain early. Plus, he unpacks the shifting dynamics in the coconut water market against big players, offering strategies to thrive amidst competition.
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Prioritize Brand Building
- Focus on building a strong brand, business, and financials.
- A successful exit is more likely if you prioritize these core elements.
Focus on Gross Margin
- Gross margin is the most important metric, reflecting profitability and potential for investment.
- Aim for a 40-50% gross margin (the “gold standard”), as this funds growth and overhead.
EBITDA over Revenue
- Focus on EBITDA (earnings before interest, taxes, depreciation, and amortization) for better valuations.
- Aim for 10-15% EBITDA for a “silver” or “gold” rating, making your business more attractive to buyers.
