Essential Coffee Group Australia: Valuation of a Potential Acquisition

Colette Southam*, James Thomson, Ryan Metcalf

*Corresponding author for this work

Research output: Contribution to specialist publicationArticleEducation


In July 2020, Todd Hiscock, chief executive officer and board chair of Essential Coffee Group (ECG) based on the Gold Coast, Australia, was perusing the company’s financials. Hiscock had witnessed ECG’s continuous growth and believed that, compounded with the distressed coffee consumption industry due to the COVID-19 pandemic, it was the perfect time to explore inorganic growth opportunities. The industry had witnessed extreme levels of consolidation within recent years, and to continue to compete at a high level in the Australian coffee industry, Hiscock knew that ECG had to move fast. He was exploring an opportunity to expand horizontally and acquire the analogous coffee bean roasting company Coffee Time Pty Ltd (CT). To determine the feasibility of the transaction, Hiscock and his financial team would need to undertake comprehensive external, internal, and financial analyses. They would also have to complete a discounted cash flow valuation and a precedent transactions analysis to determine an appropriate offer price for the targeted firm
Original languageEnglish
Number of pages11
Specialist publicationIvey Publishing [Case Studies]
PublisherIvey Business School
Publication statusPublished - 11 Jan 2023


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