Page 32 - Brewdog Teaching Notes

IPO

Covid-19 has effectively placed a halt on any BrewDog IPO,

in the near future.

This has an immediate impact upon TSG who are in line to
receive an annual return of 18% if the company is brought

or lists on the stock market.

However, given BrewDog’s planned 20% profits

redistribution and its commitment to its investment
programme and it becoming carbon negative its return on

investment may not be immediately identifiable or

supportive of an IPO.

Diagram 11: Source BrewDog (14)

The 2018 period pre-COVID-19, highlighted in diagram 11,

raises some issues that need to be addressed. Particularly

how a company is valued for flotation. For example, ROCE at

-0.3% would certainly raise some eyebrows as would return

on Net Assets and Return on Total Assets Employed.