Now, I need to know if my £230 is well invested. £2.3m is the total that Bracken and the others are hoping to raise. The total, should they sell all 10,000 shares, will be worth only 9% of BrewDog. That results in a complete value of the BrewDog brand of £25.55m. Do we think it's worth it?
Well, as a share holder I need you to now all to invest in their cunning plan. Without the £2.3m investment it won't get to the £25.5m value they are expecting. The trouble I'm having is that the current value of the assets and liabilities are not much more than £0.5m and they are only looking to expand 10 fold. So we have to assume that their current brand and fixed asset value is around £2.5m based on a £0.8m turnover and negligible profits.
Admittedly they are expecting final year turnover to be significantly higher as they are rapidly expanding. Additionally, low profits could easily be due to heavy investment, but still, I'd like to see more on the bottom line myself.
But hey, if you are a visionary, what do numbers matter? If you can buy into the idea that they are on a mission "to show people how rewarding and exciting craft beer can be" then what are you waiting for? If you can consider a beer to be Abstrakt1 and enjoy the fact that it is, then go ahead, invest in these to young ragamuffins, what else is there worth investing in these days? Not property and for sure not banks.
1Read the document on the web site.