Office Hours: Is a Valuation Squeeze Inevitable?

After a decade in which entrepreneurial food and beverage companies were incredibly popular targets for investors, increasing competition and deal frequency, valuations are coming down — and that’s not necessarily a bad thing, according to investment banker Stu Strumwasser, Managing Director of Green Circle Capital. Strumwasser recently penned an article outlining the reasons he believes a decline in valuations is inevitable — and its ramifications for entrepreneurs.

Strumwasser and a pair of highly regarded private equity executives, Farah Khan, a partner at L. Catterton, and Alison Minter, a partner at North Castle Partners, will join Jeff Klineman, BevNET’s Editor in Chief, on our Office Hours livestream on Tuesday, Aug. 18 at 3 p.m. EST. The group will discuss valuation trends in the natural products industry and the overall changes in fundraising and operational strategy that can help guide brands as the capital cycle changes.

Please send in questions ahead of time to get valuation and fundraising advice from both an experienced investment advisor — and former entrepreneur — as well as two private equity executives with deep roots in the food and beverage business. Viewers are encouraged to join the conversation either by submitting questions ahead of time or responding to the show through email ([email protected]) or text at (781) 423-3520.

This look at valuations and at the overall investment market for rising food and beverage brands will be part of a special three-part content and networking series that is open only to BevNET and NOSH subscribers. In the days following office hours, subscribers will be eligible to sign up for a special roundtable discussion to answer questions about valuations and investment with Strumwasser and the BevNET team, taking place on Aug. 26. Then, beginning on Sept. 3, subscriber brands and a group of 10 investment bankers will be able to take part in one-on-one “Speed Dating” to share valuable information around company goals and fundraising advice.

As a follow up to this edition of Office Hours we’re hosting our first Round Table event next Wednesday, August 26 from 3PM to 4PM ET. You’re invited to bring your questions to a virtual interactive discussion with Stu Strumwasser and your peers. The Round Table event is limited to 30 people and registration will open on Monday.

Once you have some of your questions answered, participate in 1-on-1 meetings with investment experts to take a deeper look at the valuation of your company, better your market knowledge and create connections with important advisors. We’re hosting another round of Speed Dating, this time with investment bankers, on Thursday, September 3rd from 11:45 AM to 1:30 PM ET. The application for Speed Dating also opens this Monday.

Transcript

Jeff Klein [00:15] Good afternoon. It's Tuesday, August 18th. Welcome to Office Hours, the show where we invite food and beverage entrepreneurs to share the resources and connections we've built up through years of reporting at BevNet and Nash. I'm Jeff Kleinman, the editor in chief of Bevnet. What determines value? Is a carefully constructed set of sales figures and estimates cross-indexed against trends and growth potential, hundreds of unseen data points, or is it just what the market at auction will bear? Over the years, I've fielded hundreds of inquiries about the overall evaluation of…

To read the full transcript, purchase a BevNET/NOSH subscription.

Related Videos