In order to attract investment, brands need to have a plan in place to foster growth and marketability, but what exactly are investors looking for from emerging brands? At Bar Convent Brooklyn, Jeff Menashe, CEO of Demeter Advisory Group, discussed the mindset of prospective buyers when sizing up a beverage-alcohol acquisition. Menashe outlined the best models for brands to attract buyers and scale their growth long term. Specifically, he addresses how shifting distribution models in the current market can help brands achieve a positive cashflow in less time than it might have historically taken them.
“I think this is where the market is going which is where you’re building distribution and market relevancy hand in hand from day one,” explained Menashe. “And the way that you do that is by knowing as the brand owner who your target consumer is.”
Kristen Bareuther, Managing Director at First Bev, followed Jeff to discuss how private equity investors evaluate potential beverage-alcohol deals. She’ll walk you through the key tenets that brands must refine in order to position themselves as an attractive candidate for investment. While it’s crucial to maintain strong market differentiation, authentic identity, and variable scalability, Bareuther wants owners to understand that it’s the people behind the brand that’ll ultimately get a deal across the line.
Bareuther explained, “If you’re a minority investor, you’re really evaluating whether or not it’s a founder group that is truly engaged and that you can align around that founder group, wrap your arms around them, and help them build their business.”