To: Anna

From: Nehal
Subject: Potential M&A Targets for WorldWide Brewing Co.

Madam

The description of Companies which maybe Suitable M&A targets for our client WorldWide Brewing Co. Here is
the names and information about the companies and whether they may or may not be a suitable target for
doing M&A.

Company Description Relevance to WorldWide Recommendation

Brewing

HappyHour HappyHour Co. is the largest It has similar operations to Recommend

Co. player in Singapore and WorldWide Brewing across the
Malaysia, in the segments of same segments and is the
beer, spirits and non- leading player in Singapore and
alcoholic beverages. Its Malaysia, suggesting the
operations include potential for strategic benefits
manufacturing facilities, and synergies. It has solid
distribution and direct sales financial results and an
and it has demonstrated ownership structure that is
strong growth in EBITDA in owned by 3 families, rendering a
FY2020 which was up 20% potential acquisition relatively
pcp and amounted to simple and feasible. HappyHour
US$300mm. Co. would be appropriate to
share.
Spirit Bay Spirit Bay is the largest player It has quite the similar Recommend
in Indonesia and second operations to WorldWide
largest in Malaysia and Brewing as it shares the same
Singapore, in the segments of segment and also is leading
spirit, Beer and Non-Alcoholic player in Indonesia and 2nd
beverages. Its operation largest player in Malaysia and
includes manufacturing Singapore. It’s 60% is owned by
facilities in Indonesia, Global Sponsor and 40% is
distribution and direct sales employee owned, which may
and it demonstrated a very lead to a bit of stretch in
strong growth in EBITDA in acquiring period but looking at
FY2020 which was up to 40% the growth rate of the company,
and amounted to Spirit Bay could be a suitable
US$400mm. and appropriate target.
Hipsters’ Ale has its HQ in Hipsters’ Ale though being Do not Recommend
Malaysia and also operates in operational in the same
Hipsters’ locations like Singapore, segments as WorldWide
Ale Indonesia, Cambodia, Japan, Brewing and operating in many
Korea in segments of Beers countries but it is not a market
and spirits. It has its leader in any. The growth is
manufacturing facilities good but the ownership status is
which in consortium of complex which may lead to
independent breweries complexities in acquisition deals.
situated in each region. It
is owned by 30
independent breweries
and has demonstrated a
15% pcp amounted up to
US%200mm in FY2020.
 Brew Co. has its HQ situated Brew Co. has a one country Do not Recommend
Brew Co. in Malaysia and is market market and it is leader in that
leader in the same. Active in country which is Malaysia. The
segments of beer and spirits. Company though valued
Operates only manufacturing excellently at US%800mm but is
facilities. Most of the share at 5% down pcp. It has one
are hold by Institutional country market which is not
shareholders. The company really suitable for expansion in
had 5% down pcp and is whole Asia as the other targets
amounted at US%800mm as are operating in multiple
per FY2020. markets. Also the shares are
hold by institutional
shareholders and so they will
look for smart money which may
be a delaying factor in the deal.
Bevy’s Direct operates in Bevy’s Direct has a large serving Recommend
multiple markets like in market and also shares similar
Bevy’s Malaysia, China, Indonesia, segments as WorldWide
Direct Japan, Korea, Cambodia, Brewing. The ownership being in
Australia, New Zealand. Only the hand of a single family
does wholesale distribution makes the acquisition simple
and operates in segments of and feasible. The company also
beers, spirits, Non-Alcoholic performs well as per FY2020
beverages. Bevy’s Direct is according to the reports. So this
owned by a single family and could be a very suitable target.
has demonstrated up to 20%
pcp and is amounted at US
%250mm.

Yours Sincerely,
Nehal