Cash-positive, ‘marquee’ wine assets dominate industry M&A
Cash-positive, ‘marquee’ wine assets dominate industry M&A
Aug 30, 2010 6
North Coast “marquee” wine labels and cash-flowing brands and other assets are more dominant in the deals getting done these days than discount transactions on troubled assets, according to a top wine industry transaction adviser.
Assets with “strong” cash flow are changing hands at prices in the range of seven to 10 times earnings before interest, taxes, depreciation and amortization, a valuation metric known by its acronym EBITDA, compared with nine to 12 times such earnings during the healthy fine wine sales market before 2008, according to Mario Zepponi, partner in Santa Rosa-based Zepponi & Company.
Comments