The veteran-owned and operated coffee company is going PUBLIC – and founder/CEO Evan Hafer understands that HIS brand isn’t going to be for everybody.
With big risk comes big reward, right?
It’s hard to risk a little and get a lot back…
So, it’s with this in mind that some companies decide that they’ve got to go all-in if they want to see their brands succeed.
Going public is the ultimate litmus test to see if your company has what it takes to “make it.” Either investors are going to get behind you and show you love, or they’re going to ignore you and watch you fade away to the dustbin of history.
Black Rifle Coffee Company founder and CEO Evan Hafer knew this going in. He told Yahoo Finance, “There are a group of people that truly love their country and they are passionate about serving their communities, those are my people. I think there are a lot of places in the United States that represent their values and their connections. To be honest with you, I am not really that concerned. I love this country. I am never ashamed to say that. I love the wide variety of people that have served this country in varying capacities. I love connecting with my customers across the country.”
He knows his base…but he also knows his ultimate goal, and sometimes, going public has nothing to do with “making it big” and is instead simply a statement of purpose.
It’s Not Always About Getting Rich
BRCC plans to make that statement loud and proud, as they’ve just announced that they’re going public through a merger with Engaged Capital.
The deal states that Black Rifle has a valuation of $1.7 billion—a HUGE valuation for a company started by veterans back in 2014—and so far, Wall Street has accepted it.
However, will investors buy into Black Rifle?
Admittedly, the company doesn’t look the best on paper.
Even though Black Rifle plans to hit $430 million in sales by 2023—a jump of almost a 50% from the $230 million estimates for 2021—the company doesn’t expect to be profitable on an operating basis until 2023. At that point, it estimates that they’ll be making $9.2 million in profits, and though that’s a respectable number, it isn’t exactly the kind of profits that make investors do back flips.
However, Black Rifle has seen 40.4% year-over-year sales so far—and if that trend can hold, then Black Rifle may be one of those ugly ducklings that grows into a beautiful swan.
But, again, Hafer isn’t really all that concerned with how rich he and his co-founders are going to be.
He cares about what going public will give him the power to do.
You see, with the $1.7 billion valuation, Hafer and company will see $225 million in cash go onto Black Rifle’s balance sheet after the deal actually closes sometime in the first quarter of 2022.
What is that money going to be used for?
Well, Black Rifle wants to use the cash to open more retail locations (they have seven stores now) and lay then create a better, faster, and more efficient distribution model so they can be found in more supermarkets and convenience stores…but that’s not the ultimate goal.
A Company America Can Get Behind
The real goal is to help Hafer’s fellow brothers-in-arms.
Hafer said, “This [IPO] has always been a goal, directly related to our mission of hiring 10,000 veterans. People are hungry in the U.S. for a brand that represents them and their success story.”
THAT is why this IPO is such a feel-good story.
It has nothing to do with making himself and his buddies rich—even though that’s sure to happen along the way.
Hafer wants to put veterans to work, and the money that IPO puts in Black Rifle’s coffers will give him the chance to do exactly that.
Now, the worst thing any investor can do is become emotionally attached to a stock. We all know that we shouldn’t have a feeling towards these companies in one way or another…but if there was one stock you should WANT to succeed, it’s Black Rifle’s.
Because if they succeed, then AMERICA succeeds…
And that’s a beautiful thing.
“On the battlefield, the military pledges to leave no soldier behind. As a nation, let it be our pledge that when they return home, we leave no veteran behind.” – Dan Lipinski