M&A Science
CPG Exit Strategy: How to Build a Consumer Brand Strategics Will Acquire | Keith Levy Part 2
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Keith Levy, Operating Partner at Sonoma Brands Capital
Roughly $50 million in top-line revenue, with EBITDA approaching double digits. That's the minimum Keith Levy says a consumer brand needs before a strategic acquirer takes it seriously.
Keith has sat in the buyer's seat. He led the Kind acquisition at Mars Wrigley and now positions brands for that kind of exit at Sonoma Brands Capital.
In Part 2, he gives his three exit criteria: a brand that stands for something, a product that fills an unmet need, and real scale. He explains why you have to reach the operators who feel the gap as well as corp dev, and why most investments break down on execution. He also covers the pre-LOI red flags that end deals early.
Keith's warning about messy data rooms, where you ask the same questions and never get a coherent answer, is the problem DealRoom Diligence was built for. Every request has an owner, a status, and a due date, and each seller upload links to the request it answers. Reduce your due diligence time by 50% by centralizing your diligence process: click here.