Brand Investment Audit — Our Methodology

Financial Health & Valuation

Lead: Warren — "Margin of safety above all."

Financial Statement Analysis (3 years minimum)

• Income statement: revenue trend, gross margin, EBITDA margin, SG&A as % of revenue
• Balance sheet: working capital, debt-to-equity, asset quality
• Cash flow statement: operating cash flow vs. net income, capex intensity, free cash flow

Cash Conversion Cycle

• Days Sales Outstanding (DSO) · Days Inventory Outstanding (DIO) · Days Payable Outstanding (DPO)
• CCC = DSO + DIO − DPO — benchmarked against industry and Vilna Gaon portfolio averages

Valuation

• SDE multiple (for SMBs under €2M EBITDA)
• DCF model with 3 scenarios: base, downside, upside
• Maximum purchase price = intrinsic value minus 30% margin of safety

Red Flags

• Declining revenue with no clear cause · Negative free cash flow · Customer concentration >30%
• Owner-dependent revenue (key-man risk) · Off-balance-sheet liabilities

Deliverable: Financial Memo with valuation range, CCC analysis, and go/no-go recommendation.

Brand & Consumer Analysis

Lead: Céline — "Every purchasing decision is emotional first, rational second."

Brand Positioning Audit

• Current positioning: what does the brand promise, to whom?
• Brand distinctiveness: is the brand recognizable without the logo? (Distinctive Brand Assets audit)
• Price positioning vs. perceived value (anchoring analysis)

Packaging & Sensory Audit

• Shelf presence: does it stand out? (5-second test)
• Cialdini compliance: does packaging trigger social proof, scarcity, authority?

Household Penetration Potential

• Current penetration rate in target market
• Distribution-weighted penetration vs. actual penetration
• Trial barriers and switching costs

Deliverable: Brand Audit Report with positioning map, persona profiles, and marketing ROI assessment.

Supply Chain & Operations

Lead: Nick — "Cash is trapped in inventory. Free it."

Inventory Analysis

• ABC/XYZ classification of full SKU portfolio
• Inventory turnover ratio and days of stock
• Dead stock and slow-mover identification (>90 days)
• SKU rationalization opportunity: what % of SKUs drive 80% of revenue?

Supplier & Sourcing

• Supplier concentration risk (single-source dependencies)
• Lead times and OTIF (On Time In Full) reliability
• MOQ constraints and their impact on cash

Operational Scalability

• Can current operations handle 2× volume without proportional cost increase?
• Technology stack: ERP, WMS, OMS — what exists, what's missing?

Deliverable: Supply Chain Diagnostic with inventory optimization roadmap and cost-saving opportunities.

Sales & Distribution

Lead: Zig — "You can have everything you want if you help enough people get what they want."

Revenue Structure

• Revenue by channel: retail, wholesale, DTC, marketplace, export
• Revenue concentration: top 5 accounts as % of total revenue
• Seasonality pattern and promotional dependency

Retail & Distribution Footprint

• Number of points of sale (POS)
• Weighted distribution: which retailers, which regions?
• Shelf position and share of shelf vs. competitors
• Listing fees, promotional contributions, and retailer margin structure

Pricing Strategy

• Pricing architecture: good/better/best tiering?
• Trade margin structure: brand margin vs. retailer margin vs. distributor margin
• Promotional frequency and depth (are promotions eroding brand equity?)

Deliverable: Sales Diagnostic with channel strategy recommendations and pipeline health assessment.

Digital & E-Commerce

Lead: Dree — "Your website is your hardest-working salesperson — or your worst."

Website & Technical Audit

• Site speed: Core Web Vitals (LCP, FID, CLS)
• Mobile responsiveness and UX flow
• SEO health: indexation, meta structure, broken links, sitemap

E-Commerce Performance

• Conversion rate by traffic source
• Cart abandonment rate and checkout friction
• Marketplace performance: Amazon, Bol, Newpharma, Kazidomi, etc.

Data & Analytics Maturity

• Is Google Analytics / tracking properly configured?
• What data does the brand own vs. what sits with retailers/marketplaces?

Deliverable: Digital Audit Report with technical fixes, SEO roadmap, and e-commerce growth plan.

Legal & Deal Structure

Lead: Edouard (legal) + Codie (deal structure) — "Protect the downside. The upside takes care of itself."

Legal Due Diligence

• Corporate structure: entity type, shareholders, beneficial owners
• Intellectual property: trademarks, patents, trade secrets — registered and protected?
• Contracts review: key customer contracts, supplier agreements, lease obligations
• Regulatory compliance: product certifications, labeling, industry-specific regulations
• Litigation: pending or threatened claims
• Employment: key employee contracts, non-competes, social obligations

Deal Structuring

• Full acquisition vs. majority stake vs. minority with path to control
• Seller financing component (earn-out, seller note, deferred payments)
• Management retention and transition plan
• Key terms: reps & warranties, non-compete, escrow, MAC clause

Deliverable: Legal Memo + Term Sheet Draft with risk matrix and recommended deal structure.