Consumer Food Business Acquisition Value

gregexer · #1 Mar 4, 2007, 10:48 AM

I'm researching downstream acquisition prospects for a niche product company.

I'm looking for any of the following -- independent corroboration(with sources), verification, correction, calibration, elaboration, examples -- regarding the following from a prominent investment banking firm.

"Food and beverage businesses with trailing 12-month revenues of $10M, EBIT in the 20% range, and forecast next-year revenue of 20% to 25% might command a $15M to $18M sale price. Companies with similar characteristics that can credibly forecast a 40% to 50% revenue trajectory in the year following acquisition might sell in the $30M range."

I would very much appreciate your assistance.

Regards,

X.



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