The rules of M&A are changing — and nowhere is that more evident than in food and beverage.
For decades, growth was the currency that closed deals. Top-line expansion, rapid distribution, and brand momentum were enough to command premium valuations. But that playbook doesn’t work anymore.
As investors demand discipline and consumers rewrite loyalty faster than ever, dealmakers are facing a reset that challenges old assumptions about what makes a company valuable.
In the latest episode of This Is M&A, ShareVault CEO Steven Monterroso sits down with Ross Colbert, Managing Director at Carter Morse & Goodrich and a global beverage industry veteran who has completed more than 100 transactions. Together, they unpack the new forces shaping deal value — and what every buyer and seller should know before entering the market.
The End of “Growth at All Costs”
The pandemic exposed what many dealmakers already sensed: not all growth is created equal. As Ross puts it, “Revenue multiples are dead.”
Buyers are now rewarding EBITDA discipline over top-line hype. Profitability, operational efficiency, and strategic focus have replaced unsustainable growth metrics as the markers of long-term value.
Distribution: The Hidden Moat
In today’s hyper-competitive landscape, distribution has quietly become the ultimate differentiator. A strong, reliable distribution network isn’t just a logistical asset — it’s a barrier to entry and a signal of strategic maturity.
“Distribution,” Ross explains, “is the hidden moat that protects value.” It’s what separates brands that scale sustainably from those that simply surge and stall.
Premiumization and Sustainability Still Command a Premium
Despite the shift toward discipline, one truth remains: consumers will still pay for quality and conscience. Brands built around sustainability, premium experiences, and authentic storytelling continue to attract buyers and justify higher valuations — but only when backed by operational rigor.
The Loyalty Curve Has Collapsed
Perhaps the most sobering insight from Ross’s perspective: consumer loyalty cycles have compressed from decades to years. The next generation of consumers is more informed, more value-conscious, and less forgiving. That volatility is reshaping how acquirers assess risk — and why strategic alignment matters more than ever.
Every Seller Needs a Post-COVID Value Story
In this new reality, valuation starts with narrative. Sellers who can articulate their post-COVID growth story — backed by data, profitability, and purpose — will stand out in a market that’s no longer buying the old playbook.
🎧 Watch Full Episode Now
Connect with Ross Colbert:
LinkedIn: linkedin.com/in/ross-colbert-664a5710/
Connect with Carter Morse & Goodrich:
LinkedIn: linkedin.com/company/carter-morse-goodrich/
Website: cartermorse.com
Need a data room for your next deal? Try ShareVault now for free!
