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.
02:08:13
forum Ask episode
web_stories AI Snips
view_agenda Chapters
menu_book Books
auto_awesome Transcript
info_circle Episode notes
volunteer_activism ADVICE
Prioritize Brand Building
Focus on building a strong brand, business, and financials.
A successful exit is more likely if you prioritize these core elements.
insights INSIGHT
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.
volunteer_activism ADVICE
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.
Get the Snipd Podcast app to discover more snips from this episode
Originally published in 2005, Poor Charlie's Almanack is a collection of eleven talks delivered by Charles T. Munger between 1986 and 2007. Edited by Peter D. Kaufman, this book draws on Munger's extensive knowledge across various fields to provide a framework for rational and rigorous approaches to life, learning, and decision-making. It is renowned for its sharp wit and rhetorical flair, making it an essential read for investors, entrepreneurs, and anyone seeking to enhance their wisdom and critical thinking skills.
⬇️ REGISTER FOR TICKETS TO LIVE PODCAST & SUPPER CLUB WITH GILES ON 25TH FEB BELOW ⬇️
This is THE most important podcast I’ve ever recorded.
Honour to sit down with INDUSTRY LEGEND legend Giles Brook.
ON THE MENU:
Why Challenger Brands Must Understand The Way You Exit has COMPLETELY CHANGED: Giles’he Gold, Silver Bronze of True Gross Margin and EBITDA
PLEASE STOP Manipulating TRUE Gross Margin: D2C brands don’t hide CAC in the P&L… it must come under true gross margin. 40% minimum.
Why “Multiples of Revenue exit is completely DEAD”. EBITDA multiple = 12x vs. Revenue multiple =. 1.9x
Why in 2025 Challenger Brands Must Become a Proper Business Earlier …”challenger brands must become a proper business much earlier” + Set up value chain EARLIER
Bio & Me Innovation-to-Exit Strategy: Brands must INNOVATE Close to the Core
Big Exit Rule No.1: BRAND BRAND BRAND.. “I’ve seen amazing businesses on paper, unable to exit as they have a crap brand… I’ve seen okay businesses, with an insane brand, have huge exit”
RedBull Zero Law: Innovation Doesn’t Need to Be Whacky + “Format Innovation is The Best Kind of Innovation”
Vita Coco’s CONSUMPTION EXPANSION Law to Piss Easily 6X Your Rate of Sale: Bigger format = more units in fridge = winder consumption opportunity = higher ROS = higher revenue
How To Commit Brandiscide in Grocery: slag off competition, buy listings, invest in ATL campaigns when you’ve got 200 stores
ATL Campaigns are pointless when you’re small, Invest in Purchase Proximity
The Founderitis Symptom: Founders in board meetings never think like a CONSUMER but ABSOLUTELY MUST
The Coconut Wars: How Vita Coco smashed Innocent and Pepsico to become the biggest Brand in Europe
The Battle of Addiction in Founders + Why Brand Building Should Be Brutal.
The Founder vs. Operator Tension: True Challenger Operators Need to Roll Their Sleeves Up
Why 90% of Exit Deals Fall Through + How to Ensure Your Brand is Exit-Ready in 2025
HUNGRY. 