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S8 E4: The Dirty Truth About Fad Products (We're Looking at You, Prime Energy)

Limited Supply

NOTE

Evaluating a Beverage Brand Acquisition

The EBITDA multiple of 13.3 indicates that the company was generating $27 million in EBITDA annually, which is a significant amount. Although the revenue of $120 million was lower than expected for a brand with widespread presence, the high EBITDA was surprising. It was noted that profitability is challenging in the beverage industry due to distribution costs, but the purchase price seemed reasonable based on industry standards. The speaker expressed surprise at the brand's revenue and ownership status, indicating that despite its broad presence, it was smaller than anticipated.

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