Michael Burgmaier

Posts by Michael Burgmaier

Beverage Deal Review: January 2012 – July 2013

The stock market has hit all-time highs, private equity has over $320 billion of capital looking for a home, Coca-Cola and PepsiCo have more than $27 billion of cash on their combined balance sheets, carbonated soft drinks continue their seemingly perpetual, long-term decline and the robust move towards healthier and functional beverages continues. What does that mean for the beverage capital markets? Good things.

Capital Market Success: What Matters?

In the last year, hundreds of beverage companies have found themselves either looking for capital or a buyer. Neither is easy. What should they do to improve their odds of success? When raising capital of selling a company, what matters to the parties with the cash? To get to that “Promised Land”, what should entrepreneurs and their boards keep top-of-mind when handling key strategic decisions? All companies require capital at some point and investors need a return on their investment, likely through selling the company (the famous “exit”) or other methods like paying dividends and going public. In the last year, Silverwood Partners, where I work, has concluded multiple successful exclusive advisory engagements in the sale of beverage companies (Function Drinks to Sunsweet Growers) and capital raises (Zola, Maverick Brands/Sunkist Naturals).

The Blurring Lines: Strategics, Private Equity, and Timing

As an investment banker with Silverwood Partners working in the healthy/active living consumer packaged goods (CPG) space, I’ve often said that the joke about investors is true – they enter the room walking backwards with their eye on the exit. Perhaps entrepreneurs and founders should, as well. Unless you are building a company to comfortably live off of cash flows, you will need to sell your company at some time.