Vapor Beast Sold To Tobacco Company For 27 Million

[daviedog]

VB had a good business model,, worth 27 mil.
I know of another 'big boy' that didn't, they just went Belly Up..

 

[DC2]

Wow, did I ever screw up when I decided not to risk my life savings in the vapor business. But then again, I don't know how much work went into creating the "distribution channel" that vapor beast has. And it seems the "distribution channel" is what was really purchased here.

Still, damn...

 

[zoiDman]

Wow, did I ever screw up when I decided not to risk my life savings in the vapor business. But then again, I don't know how much work went into creating the "distribution channel" that vapor beast has. And it seems the "distribution channel" is what was really purchased here.

Still, damn...

Hard to say if 27M was a good price or not?

VB could have owned a Big Chuck of Land with a Big Modern Building on it. And all the Stuff inside needed to do $53.2M in Revenue last year. With $6.4M in Net Income and a EBITDA of $6.9M.

Turning Point Brands to acquire VaporBeast, a leading e-commerce platform

 

[Eskie]

Hard to say if 27M was a good price or not?

VB could have owned a Big Chuck of Land with a Big Modern Building on it. And all the Stuff inside needed to do $53.2M in Revenue last year. With $6.4M in Net Income and a EBITDA of $6.9M.

Turning Point Brands to acquire VaporBeast, a leading e-commerce platform

Roughly 4-5 times earnings. Not terrible for a privately owned business. Besides, part of that is in stock, so I'm sure the sellers expect that value to rise over the long term as well.

 

[WharfRat1976]

Hard to say if 27M was a good price or not?

VB could have owned a Big Chuck of Land with a Big Modern Building on it. And all the Stuff inside needed to do $53.2M in Revenue last year. With $6.4M in Net Income and a EBITDA of $6.9M.

Turning Point Brands to acquire VaporBeast, a leading e-commerce platform

A 3 or 4:1 multiple on a business facing severe regulation. VB got an offer they could not refuse.

They will use VB channels for their products and we shall see if they bring mainline vape products to market under the new regs. Until then, they will squeeze every last drop out until the regs kick in fully.

This is my best guess...

 

[zoiDman]

A 3 or 4:1 multiple on a business facing severe regulation. VB got an offer they could not refuse.

They will use VB channels for their products and we shall see if they bring mainline vape products to market under the new regs. Until then, they will squeeze every last drop out until the regs kick in fully.

This is my best guess...

It's just hard to say where we are Going Now?

Before Nov 8th, I felt I had a Very Good grasp of the direction things were Heading. But it seems that Since Nov 9th, All Bets are Off.

LOL