Crafted ERP by Doozy Solutions’ Post

Why does gross margin matter in a business acquisition? Discover on our blog: https://lnkd.in/ezcUqY2r   At the 2021 ADI Annual Conference, Robert Furniss-Roe, co-founder and chief executive officer of Samson & Surrey, highlighted the crucial role of understanding gross margin during acquisition. He stated, “The reason why gross margin matters not only for building the business but also for people looking at the business is because it’s really the best summary of the overall health of what you built.” Heaven Hill Brands, the largest independent, family-owned and operated spirits producer in the U.S., acquired Crafted customer Samson & Surrey in 2022.   Gross margin is a critical metric that reflects net sales after taxes and your ability to manage costs. Here’s why it matters:  🔹Reflects Business Health: It shows how well you’ve managed your business, balancing sales and costs. 🔹Attracts Buyers: A substantial gross margin indicates efficient operations and profitability, making your business more attractive. 🔹Supports Long-Term Revenue Generation: Ensures sustainability by operating within a narrow band of gross margin.   #BusinessAcquisition #GrossMargin #FinancialHealth #BevAlc

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