NewAge Inc (fka NBEVQ) (NBEVQ)

[Roland Rick Perry]

Potential Growth vs Current Sales.

Acquisition values are often based on past growth and potential growth versus current sales.

As example Ben Weiss, the founder and CEO of Bai Brands, today revealed that Dr Pepper Snapple Group’s (DPS) $15 million acquisition of a minority stake in his company was based on a half-billion dollar valuation. The deal gives DPS a 3 percent ownership position in Bai, which also recently secured a $25 million line of credit from global investment banking firm J.P. Morgan Chase, Weiss told BevNET.

Bai had sales of $5 million in 2012, $17 million in 2013 and are on track to do $40 million in 2014. The Dr Pepper could appear wildly dilutive at 12.5 times sales. But that would be assuming growth stalls out.

Using the same math would have valued Bucha at $37 million, if Bucha had sales of $3 million. Just saying.

Two articles on BAI: https://flipboard.com/@institution73s6/beverage-stock-review-m1rlrbvsz

https://flipboard.com/@institution73s6/beverage-stock-review-m1rlrbvsz