Premium multiples still attainable
The content of this article is not to say that premium multiples for pet companies are no longer available. In fact, there is ample evidence, based on the Natura Pet Products Inc. and Waggin’ Train LLC transactions, that the 2006â€“2008 data set remains relevant, but we are no longer looking at a one-size-fits0all world in petfood/treats. Rather, premium multiples will be reserved for deals with characteristics common to premium deals in other consumer markets:
- Brand awareness and value;
- Operating leverage and economies of scale;
- Defensible intellectual property; and
- Proven management.
Large multi-brand properties that command significant shelf space across multiple sales channels will be the beneficiary of these valuations.