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    Task 1 - Solution

    Uploaded by

    Joan Pujol
    Joan provides descriptions and recommendations for potential M&A targets for Worldwide Brewing. Two companies, HappyHour Co. and Bevy's Direct, are recommended as they have similar operations across the same segments as Worldwide Brewing and demonstrate strong financial performance. Spirit Bay and Hipsters' Ale are also recommended as they are strategically relevant but may have more complex ownership structures. Brew Co. is not recommended as it only operates in Malaysia and has declining financials.

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    Task 1 - Solution

    Uploaded by

    Joan Pujol
    17 views3 pages
    Joan provides descriptions and recommendations for potential M&A targets for Worldwide Brewing. Two companies, HappyHour Co. and Bevy's Direct, are recommended as they have similar operations across the same segments as Worldwide Brewing and demonstrate strong financial performance. Spirit Bay and Hipsters' Ale are also recommended as they are strategically relevant but may have more complex ownership structures. Brew Co. is not recommended as it only operates in Malaysia and has declining financials.

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    Joan provides descriptions and recommendations for potential M&A targets for Worldwide Brewing. Two companies, HappyHour Co. and Bevy's Direct, are recommended as they have similar operations across the same segments as Worldwide Brewing and demonstrate strong financial performance. Spirit Bay and Hipsters' Ale are also recommended as they are strategically relevant but may have more complex ownership structures. Brew Co. is not recommended as it only operates in Malaysia and has declining financials.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    17 views3 pages

    Task 1 - Solution

    Uploaded by

    Joan Pujol
    Joan provides descriptions and recommendations for potential M&A targets for Worldwide Brewing. Two companies, HappyHour Co. and Bevy's Direct, are recommended as they have similar operations across the same segments as Worldwide Brewing and demonstrate strong financial performance. Spirit Bay and Hipsters' Ale are also recommended as they are strategically relevant but may have more complex ownership structures. Brew Co. is not recommended as it only operates in Malaysia and has declining financials.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    To: Anna

    From: Joan Pujol


    Subject Potential M&A targets for Worldwide Brewing
    :

    Hi Anna,

    Below are my descriptions and recommendations for potential M&A targets for worldwide
    brewing.

    Company Description Relevance to WorldWide Recommendation


    Brewing

    HappyHour HappyHour Co. is the It has similar operations to Recommend


    Co. largest player in WorldWide Brewing
    Singapore and Malaysia, across the same segments
    in the segments of beer, and is the leading player in
    spirits and non-alcoholic Singapore and Malaysia,
    beverages. Its suggesting the potential
    operations include for strategic benefits and
    manufacturing facilities, synergies. It has solid
    distribution and direct financial results and an
    sales and it has ownership structure that
    demonstrated strong is owned by 3 families,
    growth in EBITDA in rendering a potential
    FY2020 which was up acquisition relatively
    20% pcp and amounted simple and feasible.
    to US$300mm. HappyHour Co. would be
    appropriate to share.
    Spirit Bay Spirit Bay is the second Its segments and Recommend
    largest player in operations would be
    Singapore and Malaysia appropriate strategically.
    and largest player in The relatively distributed
    Indonesia in segments ownership with 60% of the
    of beer, spirits and non- company owned by Global
    alcoholic beverages. It Sponsor and 40% owned
    operates manufacturing by employees would
    facilities and engages in reduce simplicity but it
    distribution and direct would still be appropriate
    sales and its EBITDA to share given its market
    grew by 40% pcp to position in Singapore,
    US$400mm in FY2020. Malaysia and Indonesia
    and exceptional financial
    performance
    Hipsters' Ale has An acquisition of Hipsters' Recommend
    locations in Singapore, Ale would make sense
    Indonesia, Japan, Korea strategically and
    and Cambodia and financially, given its
    Hipsters' focuses on beer and relevant. Segments and
    Ale spirits. Its operations operations as well as solid
    include manufacturing financial performance. Its
    facilities, distribution ownership by 30
    and direct sales and the independent breweries
    company experienced may affect feasibility,
    EBITDA growth of 15ft though given the
    pcp to reach suitability otherwise, it
    USH200mm (FY2020). would still be appropriate
    to share.
    Brew Co. is the largest It would not be a good fit Not Recommend
    alcohol manufacturer in from a strategic expansion
    Malaysia. Its operations perspective, given it is
    Brew Co. include manufacturing Malaysia focused and
    facilities only and operates manufacturing
    although it had an facilities only. It is listed on
    EBITDA of US1800mmin the Malaysian stock
    FY2020, this was down exchange which
    5f pcp. wouldIncrease the
    complexity of a potential
    acquisition given its
    dispersed ownership. As
    such, Brew Co. would not
    be appropriate to share.
    Bevy's Direct has It has locations spanning Recommend
    locations in Malayisa, across Asia-Pacific and its
    Bevy's China, Indonesia, Japan, segments are Let me know
    Direct Korea, Cambodia, if you have any questions
    Australia and New or if can help with
    Zealand and is a anything else appropriate
    wholesale distributor in to share. aligned with
    beer, spirits and non WorldWide Brewing. This
    alcoholic beverages. It may make sense from a
    reported an EBITDA of strategic viewpoint for a
    USff250mm which was vertical acquisition and
    up 20 pcp. would be simple and
    feasible given it is owned
    by one family. Bevy's
    Direct would be
    appropriate to share.

    Let me know if you have any questions or if can help with anything else.

    Kind regards,

    Joan Pujol

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