Craft brewer (homebrewer) Investor A has a 7 million dollars (700,000) to invest, but wants you to spend 5 million ($500,000) on advertising and 2 million ($200,000) on capital expansion. Investor wants 20% of company in return. Investor B has 3 million ($300,000) but wants you to invest it all on capital. Investor wants 35% of company in return. Investor C has $8 million dollars ($800,000) and wants you to spend $3 million ($300,000) on advertising and $5 million ($500,000) on capital, but wants 55% of company in return. Also wants you to focus 50% of product line/capacity on industrial lager. Which would you choose?
An extra zero The capitalist inside of me says A and then bail before the ad money goes. The realist says that much advertising spend could almost make me see a floor in the Fairfax stock price. The craft beer side says B. Very hard to compete in the bottled space unless you have high quality product. Advertising money doesn't equal tap fonts
All of them. Don't tell either one that I'm dealing with the others. I take all the money. I then fly to Japan (no extradition treaty) and laugh and drink my a_se off while they try and sort out the 110% of a company I've left them with. Then with my 19 million dollars I would: send Lukie and Mr Perthbelgianbeers lambic care packs send the Sydney boys (Mr K, Mr Danieelol, Mr Mulder, Mr Spicelab, Mr Heygeebee etc) delicious wacky Japanese beer packs Mr Parrotshake I would fly over because he always seems to cook a good breakfast for his beers and I'm sure his gf would appreciate the holiday Mr ADZA, Mr scmorgan, Mr ALEBOY, Mr Joecast, Mr dgilks, Mr Hopswiller, Mr Hawthorne, Mr Gulden, Mr Deathevocation, Mr Jbowers and Mr Sinkas I would say PM me because I dont really know what you want but, hey, I've got 19m to get rid of, tell me what you want and I will get it. For you Mr Yallop I would give nothing. Firstly for the question, in which you seem to be trying to set us all up as sell-outs and hopefully pick apart the dichotomy between our views on Creatures and what we would do ourselves and secondly because of the phrase 'I warned you, you didnt listen, die arseholes.' That wasn't polite.
I think you have been watching too many crappy shows about self-proclaimed "entrepreneurs" "'I warned you, you didnt listen, die arseholes.'" Did he actually say that? lol.
erm, yes he did, but Cricket Australia threatened to cancel his Twitter account as well, so he deleted the post....
Love it MordeciaFunk. In response to the original question, I'd take the first. The 5m in advertising should create enough demand to support a reasonable price and then sufficient profits to expand the brewery beyond what the initial 2m creates. On the other hand, there is no way I'd give up massive chunks of my equity for nothing more than cash, especially if it led to someone else getting a controlling stake.
