Valuation of Beer Distributors
North American Beer Importer
Anderson Economic Group was retained by a beer importer to estimate the fair market values of several distributors of their product in the New York City area. By “fair market value,” we mean the price a willing buyer would pay to a willing seller, both possessing adequate information, for the economic value of the line of business. The valuation was done using the best available information, and well-accepted methods of estimating the economic value of a firm. However, certain unique characteristics of the market affected the value of each distributor, and adjustments were made for discounts and for premium factors of marketability, barriers to entry, scale, uniqueness of distribution system in the state, per-capita consumption and other market patterns, “bottle law” factors, and dominance of brands.
We produced a report with sections for each distributor, for use by the importer in improving its distribution network and in negotiations with its distributors.