Bubble and Bee Organic - Historical Financial Information

Balance Sheet

Income Statement
2013

Assets
Current Assets
Cash
Receivables
Inventories
Total Current Assets
Fixed Assets
PP&E
Less Depreciation
Total Fixed Assets
Total Assets
Liabilities & Shareholder's Equity
Current Liabilities
Accounts Payable
Accrued Liabilities
Bank Loan
Total Current Liabilities
Long Term Liabilities
Total Liabilities
Shareholder's Equity
Member's Equity
Retained Earnings
Total Shareholder's Equity
Total Liabilities and Shareholder's Equity

Base Case Assumptions

1 Revenue Growth of about 15% per year
Unit Demand
Average Selling Price
2 COGS % as a % of Revenues
3 Selling Expense as a % of Sales
4 General and Administrative Expense
G&A as a % of Revenue
Rent Option
Buy Option
Total Fixed G&A Expense
5 Depreciation Expense
Existing Equipment
Building - 30 years
New Equipment
Total
6 Interest Rate on 20 year loan
7 Tax Rate NA due to LLC
8 Receivables as a % of Revenues
9 Inventory as a % of Revenues
10 Accounts Payable as a % Revenues
11 Accrued Liabilities % of Sales
12 Equity only financing
13 Additions to PP&E
14 Dividends - Owner Draws if cash balance >50,000
15 Additions to Debt - Bank Loan
16 (Reductions) to Debt - Bank Loan
17 Additions to Debt - Long Term Debt
18 (Reductions) to Debt - Long Term Debt

2014

2015

2016

2017

25,567
32,375
131,250
189,192

43,008
35,525
143,937
222,470

233,341
40,852
163,406
437,599

342,469
46,980
187,919
577,368

640,954
54,027
216,106
911,087

395,785
95,221
300,564

470,185
190,442
279,743

470,185
285,663
184,522

570,185
390,884
179,301

570,185
496,105
74,080

489,756

502,213

622,121

756,669

985,167

44,625
201,796
246,421
246,421

53,286
159,579
212,865
212,865

81,703
81,703
81,703

93,959
93,959
93,959

108,053
108,053
108,053

175,000
68,335
243,335

175,000
114,348
289,348

175,000
365,417
540,417

175,000
487,709
662,709

175,000
702,113
877,113

489,756
-

502,213
-

622,121
-

756,669
-

985,167
-

2014

15%
126,869
14.00 $

95,221
95,221

2015

2016

143,339
14.25 $
20%
25%

2017

161,999
14.50 $
21%
26%

183,141
14.75
21%
27%

5%
675,000
600,000
1,275,000

5%
725,000
650,000
1,375,000

5%
775,000
700,000
1,475,000

95,221
36,667
131,888

95,221
36,667
10,000
141,888

95,221
36,667
10,000
141,888

5%
0%
2%
8%
4%

175,000
-

5%
0%
2%
8%
4%

100,000
175,000

5%
0%
2%
8%
4%

175,000

Revenues
Cost of Goods Sold
Gross Margin
Expenses
Selling
General & Administrative Variable
General & Administrative Fixed
Depreciation
Total Expenses
EBIT
Net Interest Expense
Taxable Income
Taxes
Net Income
Cash Flow Statement
Cash Provided (used) by Operations
Net Income
Plus Depreciation
Change in Working Capital
Decrease (increase) in Receivables
Decrease (increase) in Inventory
Increase (decrease) in Accts. Payable
Increase (decrease) in Accrued Liabilities
Cash Provided (used) by Operations
Cash Provided (used) by Investments
Additions to PP&E
Other Investments
Cash Provided (used) by Investments
Cash Provided (used) by Financing Activities
Additions (reductions) to Debt
Net issues of Stock
(Dividends - Owner Draws)
Cash Provided (used) by Financing Activities
Net increase (decrease) in cash

2014
1,776,168
357,597
1,418,571

2015
2,042,581
408,516.15
1,634,065

2016
2,348,986
493,287
1,855,699

2017
2,701,330
567,279
2,134,051

439,512
572,776
82,514
95,221
1,190,023
228,548
7,535
221,013
221,013

510,645
102,129
675,000
95,221
1,382,995
251,069
251,069
251,069

610,736
117,449
725,000
105,221
1,558,407
297,292
297,292
297,292

729,359
135,066
775,000
105,221
1,744,647
389,404
389,404
389,404

221,013
95,221

251,069
95,221

297,292
105,221

389,404
105,221

(3,150)
(12,687)
8,661
309,058

(5,327)
(19,469)
28,417
349,912

(6,128)
(24,512)
12,256
384,129

(7,047)
(28,188)
14,094
473,484

(74,400)
(74,400)

(100,000)

(100,000)

(42,217)
(175,000)
(217,217)
17,441

(159,579)
(159,579)
190,333

(175,000)
(175,000)
109,129

(175,000)
(175,000)
298,484

365
Lill's RATIO ANALYSIS
Liquidity Ratios
Current ratio
Quick ratio
Conversion Period Ratios
Inventory-to-sale Convestsion period
Sale-to cash Conversion Period
Purchase-to-payment Conversion Period
Cash conversion cycle
Leverage Ratios
Total debt to total assets
Interest coverage
Profitability Ratios
Gross profit margin
Operating profit margin
Net profit margin
NOPAT margin
Efficiency and Return Ratios
Sales to total assets
Operating return on assets
Return on assets
Return on equity
DuPont and ROE
Net profit margin
Sales to tatal assets
Total assets to Total Equity
ROE
Analysis

2014

2015

2016

0.90
0.30

2.24
1.20

5.78
3.78

140.44
6.98
49.97
97.45

137.30
6.82
60.30
83.82

129.98
6.82
64.99
71.81

0.46
42.97 N/A
0.80

0.26

0.13
N/A

0.80
###
###
###

0.79
###
###
###

###
###
###

3.58
0.46
0.45
0.83

3.63
0.45
0.45
0.61

3.41
0.43
0.43
0.49

0.12
3.58
1.86
0.83

0.12
3.63
1.36
0.61

0.13
3.41
1.15
0.49

2017

7.37
5.37
129.98
6.82
64.99
71.81
0.12
N/A
0.79
###
###
###
3.10
0.45
0.45
0.51
0.14
3.10
1.13
0.51

Bubble and Bee Organic - Historical Financial Information

Balance Sheet

Income Statement
2013

Assets
Current Assets
Cash
Receivables
Inventories
Total Current Assets
Fixed Assets
PP&E
Less Depreciation
Total Fixed Assets
Total Assets
Liabilities & Shareholder's Equity
Current Liabilities
Accounts Payable
Accrued Liabilities
Bank Loan
Total Current Liabilities
Long Term Liabilities
Total Liabilities
Shareholder's Equity
Member's Equity
Retained Earnings
Total Shareholder's Equity
Total Liabilities and Shareholder's Equity

Base Case Assumptions

1 Revenue Growth of about 15% per year
Unit Demand
Average Selling Price
2 COGS % as a % of Revenues
3 Selling Expense as a % of Sales
4 General and Administrative Expense
G&A as a % of Revenue
Rent Option
Buy Option
Total Fixed G&A Expense
5 Depreciation Expense
Existing Equipment
Building - 30 years
New Equipment
Total
6 Interest Rate on 20 year loan
7 Tax Rate NA due to LLC
8 Receivables as a % of Revenues
9 Inventory as a % of Revenues
10 Accounts Payable as a % Revenues
11 Accrued Liabilities % of Sales
12 Equity only financing
13 Additions to PP&E
14 Dividends - Owner Draws if cash balance >50,000
15 Additions to Debt - Bank Loan
16 (Reductions) to Debt - Bank Loan
17 Additions to Debt - Long Term Debt
18 (Reductions) to Debt - Long Term Debt

2014

2015

2016

2017

25,567
32,375
131,250
189,192

43,008
35,525
143,937
222,470

130,074
36,158
144,631
310,862

186,179
36,792
147,168
370,139

113,795
37,426
149,705
300,927

395,785
95,221
300,564

470,185
190,442
279,743

470,185
285,663
184,522

570,185
390,884
179,301

570,185
496,105
74,080

489,756

502,213

495,384

549,440

375,007

44,625
201,796
246,421
246,421

53,286
159,579
212,865
212,865

72,315
72,315
72,315

73,584
73,584
73,584

74,853
74,853
74,853

175,000
68,335
243,335

175,000
114,348
289,348

175,000
248,069
423,069

175,000
300,856
475,856

175,000
125,154
300,154

489,756
-

502,213
-

495,384
-

549,440
-

375,007
-

2014

15%
126,869
14.00 $

95,221
95,221

2015

2016

126,869
14.25 $
20%
25%

2017

126,869
14.50 $
21%
26%

126,869
14.75
21%
27%

5%
675,000
600,000
1,275,000

5%
725,000
650,000
1,375,000

5%
775,000
700,000
1,475,000

95,221
36,667
131,888

95,221
36,667
10,000
141,888

95,221
36,667
10,000
141,888

5%
0%
2%
8%
4%

175,000
-

5%
0%
2%
8%
4%

100,000
175,000

5%
0%
2%
8%
4%

175,000

Revenues
Cost of Goods Sold
Gross Margin
Expenses
Selling
General & Administrative Variable
General & Administrative Fixed
Depreciation
Total Expenses
EBIT
Net Interest Expense
Taxable Income
Taxes
Net Income
Cash Flow Statement
Cash Provided (used) by Operations
Net Income
Plus Depreciation
Change in Working Capital
Decrease (increase) in Receivables
Decrease (increase) in Inventory
Increase (decrease) in Accts. Payable
Increase (decrease) in Accrued Liabilities
Cash Provided (used) by Operations
Cash Provided (used) by Investments
Additions to PP&E
Other Investments
Cash Provided (used) by Investments
Cash Provided (used) by Financing Activities
Additions (reductions) to Debt
Net issues of Stock
(Dividends - Owner Draws)
Cash Provided (used) by Financing Activities
Net increase (decrease) in cash

2014
1,776,168
357,597
1,418,571

2015
1,807,883
361,576.65
1,446,307

2016
1,839,601
386,316
1,453,284

2017
1,871,318
392,977
1,478,341

439,512
572,776
82,514
95,221
1,190,023
228,548
7,535
221,013
221,013

451,971
90,394
675,000
95,221
1,312,586
133,721
133,721
133,721

478,296
91,980
725,000
105,221
1,400,497
52,787
52,787
52,787

505,256
93,566
775,000
105,221
1,479,043
(702)
(702)
(702)

221,013
95,221

133,721
95,221

52,787
105,221

(702)
105,221

(3,150)
(12,687)
8,661
309,058

(633)
(694)
19,029
246,645

(634)
(2,537)
1,269
156,105

(634)
(2,537)
1,269
102,616

(74,400)
(74,400)

(100,000)

(100,000)

(42,217)
(175,000)
(217,217)
17,441

(159,579)
(159,579)
87,066

56,105

(175,000)
(175,000)
(72,384)

365
Lill's RATIO ANALYSIS
Liquidity Ratios
Current ratio
Quick ratio
Conversion Period Ratios
Inventory-to-sale Convestsion period
Sale-to cash Conversion Period
Purchase-to-payment Conversion Period
Cash conversion cycle
Leverage Ratios
Total debt to total assets
Interest coverage
Profitability Ratios
Gross profit margin
Operating profit margin
Net profit margin
NOPAT margin
Efficiency and Return Ratios
Sales to total assets
Operating return on assets
Return on assets
Return on equity
DuPont and ROE
Net profit margin
Sales to tatal assets
Total assets to Total Equity
ROE
Analysis

2014

2015

2016

0.90
0.30

1.87
0.81

4.67
2.45

140.44
28.28
49.97
118.75

145.65
29.13
63.40
111.38

137.85
28.95
68.92
97.87

0.46
42.97 N/A
0.80

0.29

0.14
N/A

0.80
###
###
###

0.79
###
###
###

###
###
###

3.58
0.46
0.45
0.83

3.62
0.27
0.27
0.38

3.52
0.10
0.10
0.12

0.12
3.58
1.86
0.83

0.07
3.62
1.40
0.38

0.03
3.52
1.16
0.12

2017

4.52
4.17
137.87
28.95
68.93
97.89
0.16
N/A
0.79
###
###
###
4.05
0.00
0.00
0.00
0.00
4.05
1.19
0.00

Bubble and Bee Organic - Historical Financial Information

Balance Sheet

Income Statement
2013

Assets
Current Assets
Cash
Receivables
Inventories
Total Current Assets
Fixed Assets
PP&E
Less Depreciation
Total Fixed Assets
Total Assets
Liabilities & Shareholder's Equity
Current Liabilities
Accounts Payable
Accrued Liabilities
Bank Loan
Total Current Liabilities
Long Term Liabilities
Total Liabilities
Shareholder's Equity
Member's Equity
Retained Earnings
Total Shareholder's Equity
Total Liabilities and Shareholder's Equity

Base Case Assumptions

1 Revenue Growth of about 15% per year
Unit Demand
Average Selling Price
2 COGS % as a % of Revenues
3 Selling Expense as a % of Sales
4 General and Administrative Expense
G&A as a % of Revenue
Rent Option
Buy Option
Total Fixed G&A Expense
5 Depreciation Expense
Existing Equipment
Building - 30 years
New Equipment
Total
6 Interest Rate on 20 year loan
7 Tax Rate NA due to LLC
8 Receivables as a % of Revenues
9 Inventory as a % of Revenues
10 Accounts Payable as a % Revenues
11 Accrued Liabilities % of Sales
12 Equity only financing
13 Additions to PP&E
14 Dividends - Owner Draws if cash balance >50,000
15 Additions to Debt - Bank Loan
16 (Reductions) to Debt - Bank Loan
17 Additions to Debt - Long Term Debt
18 (Reductions) to Debt - Long Term Debt

2014

2015

2016

2017

25,567
32,375
131,250
189,192

43,008
35,525
143,937
222,470

118,901
40,852
163,406
323,159

223,589
46,980
187,919
458,488

517,633
54,027
216,106
787,766

395,785
95,221
300,564

470,185
190,442
279,743

1,570,185
322,330
1,247,855

1,670,185
464,218
1,205,967

1,670,185
606,106
1,064,079

489,756

502,213

1,571,014

1,664,455

1,851,845

44,625
201,796
246,421
246,421

53,286
159,579
212,865
212,865

81,703
81,703
960,060
1,041,763

93,959
93,959
928,623
1,022,582

108,053
108,053
895,614
1,003,667

175,000
68,335
243,335

175,000
114,348
289,348

175,000
354,250
529,250

175,000
466,872
641,872

175,000
673,178
848,178

489,756
-

502,213
-

1,571,014
-

1,664,455
-

1,851,845
-

2015

2016

2017

2014

15%
126,869
14.00 $

95,221
95,221

143,339
14.25 $
20%
25%

161,999
14.50 $
21%
26%

183,141
14.75
21%
27%

5%
675,000
600,000
1,275,000

5%
725,000
650,000
1,375,000

5%
775,000
700,000
1,475,000

95,221
36,667
131,888

95,221
36,667
10,000
141,888

95,221
36,667
10,000
141,888

5%
0%
2%
8%
4%

5%
0%
2%
8%
4%

5%
0%
2%
8%
4%

990,000
(159,579)
990,000

100,000
-

175,000

Revenues
Cost of Goods Sold
Gross Margin
Expenses
Selling
General & Administrative Variable
General & Administrative Fixed
Depreciation
Total Expenses
EBIT
Net Interest Expense
Taxable Income
Taxes
Net Income
Cash Flow Statement
Cash Provided (used) by Operations
Net Income
Plus Depreciation
Change in Working Capital
Decrease (increase) in Receivables
Decrease (increase) in Inventory
Increase (decrease) in Accts. Payable
Increase (decrease) in Accrued Liabilities
Cash Provided (used) by Operations
Cash Provided (used) by Investments
Additions to PP&E
Other Investments
Cash Provided (used) by Investments
Cash Provided (used) by Financing Activities
Additions (reductions) to Debt
Net issues of Stock
(Dividends - Owner Draws)
Cash Provided (used) by Financing Activities
Net increase (decrease) in cash

2014
1,776,168
357,597
1,418,571

2015
2,042,581
408,516.15
1,634,065

2016
2,348,986
493,287
1,855,699

2017
2,701,330
567,279
2,134,051

439,512
572,776
82,514
95,221
1,190,023
228,548
7,535
221,013
221,013

510,645
102,129
600,000
131,888
1,344,662
289,402
49,500
239,902
239,902

610,736
117,449
650,000
141,888
1,520,074
335,625
48,003
287,622
287,622

729,359
135,066
700,000
141,888
1,706,314
427,737
46,431
381,306
381,306

221,013
95,221

239,902
131,888

287,622
141,888

381,306
141,888

(3,150)
(12,687)
8,661
309,058

(5,327)
(19,469)
28,417
375,412

(6,128)
(24,512)
12,256
411,126

(7,047)
(28,188)
14,094
502,053

(74,400)
(74,400)

(1,100,000)

(100,000)

(1,100,000)

(100,000)

(42,217)
(175,000)
(217,217)
17,441

800,481
-

(31,437)
(175,000)
(206,437)
104,689

(33,009)
(175,000)
(208,009)
294,044

800,481
75,893

365
Lill's RATIO ANALYSIS
Liquidity Ratios
Current ratio
Quick ratio
Conversion Period Ratios
Inventory-to-sale Convestsion period
Sale-to cash Conversion Period
Purchase-to-payment Conversion Period
Cash conversion cycle
Leverage Ratios
Total debt to total assets
Interest coverage
Profitability Ratios
Gross profit margin
Operating profit margin
Net profit margin
NOPAT margin
Efficiency and Return Ratios
Sales to total assets
Operating return on assets
Return on assets
Return on equity
DuPont and ROE
Net profit margin
Sales to tatal assets
Total assets to Total Equity
ROE
Analysis

2014

2015

2016

0.90
0.30

1.85
0.81

4.45
2.45

140.44
6.98
49.97
97.45

137.30
6.82
60.30
83.82

129.98
6.82
64.99
71.81

0.46
42.97

0.61
7.77

0.64
9.18

0.80

0.80
#
#
#

0.79
#
#
#

3.58
0.46
0.45
0.83

1.97
0.28
0.23
0.59

1.45
0.21
0.18
0.49

0.12
3.58
1.86
0.83

0.12
1.97
1.36
0.59

0.12
1.45
1.15
0.49

###
###
###

2017

6.17
4.17
129.98
6.82
64.99
71.81
0.58
11.48
0.79
#
#
#
1.54
0.24
0.22
0.51
0.14
1.54
1.13
0.51

Bubble and Bee Organic - Historical Financial Information

Balance Sheet

Income Statement
2013

Assets
Current Assets
Cash
Receivables
Inventories
Total Current Assets
Fixed Assets
PP&E
Less Depreciation
Total Fixed Assets
Total Assets
Liabilities & Shareholder's Equity
Current Liabilities
Accounts Payable
Accrued Liabilities
Bank Loan
Total Current Liabilities
Long Term Liabilities
Total Liabilities
Shareholder's Equity
Member's Equity
Retained Earnings
Total Shareholder's Equity
Total Liabilities and Shareholder's Equity

Base Case Assumptions

1 Revenue Growth of about 15% per year
Unit Demand
Average Selling Price
2 COGS % as a % of Revenues
3 Selling Expense as a % of Sales
4 General and Administrative Expense
G&A as a % of Revenue
Rent Option
Buy Option
Total Fixed G&A Expense
5 Depreciation Expense
Existing Equipment
Building - 30 years
New Equipment
Total
6 Interest Rate on 20 year loan
7 Tax Rate NA due to LLC
8 Receivables as a % of Revenues
9 Inventory as a % of Revenues
10 Accounts Payable as a % Revenues
11 Accrued Liabilities % of Sales
12 Equity only financing
13 Additions to PP&E
14 Dividends - Owner Draws if cash balance >50,000
15 Additions to Debt - Bank Loan
16 (Reductions) to Debt - Bank Loan
17 Additions to Debt - Long Term Debt
18 (Reductions) to Debt - Long Term Debt

2014

2015

2016

2017

25,567
32,375
131,250
189,192

43,008
35,525
143,937
222,470

15,634
36,158
144,631
196,422

67,299
36,792
147,168
251,259

165,475
37,426
149,705
352,607

395,785
95,221
300,564

470,185
190,442
279,743

1,570,185
322,330
1,247,855

1,670,185
464,218
1,205,967

1,670,185
606,106
1,064,079

489,756

502,213

1,444,277

1,457,226

1,416,686

44,625
201,796
246,421
246,421

53,286
159,579
212,865
212,865

72,315
72,315
960,060
1,032,375

73,584
73,584
928,623
1,002,207

74,853
74,853
895,614
970,467

175,000
68,335
243,335

175,000
114,348
289,348

175,000
236,902
411,902

175,000
280,019
455,019

175,000
271,219
446,219

489,756
-

502,213
-

1,444,277
-

1,457,226
-

1,416,686
-

2015

2016

2017

2014

15%
126,869
14.00 $

95,221
95,221

126,869
14.25 $
20%
25%

126,869
14.50 $
21%
26%

126,869
14.75
21%
27%

5%
675,000
600,000
1,275,000

5%
725,000
650,000
1,375,000

5%
775,000
700,000
1,475,000

95,221
36,667
131,888

95,221
36,667
10,000
141,888

95,221
36,667
10,000
141,888

5%
0%
2%
8%
4%

175,000
-

5%
0%
2%
8%
4%

100,000
175,000

5%
0%
2%
8%
4%

175,000

Revenues
Cost of Goods Sold
Gross Margin
Expenses
Selling
General & Administrative Variable
General & Administrative Fixed
Depreciation
Total Expenses
EBIT
Net Interest Expense
Taxable Income
Taxes
Net Income
Cash Flow Statement
Cash Provided (used) by Operations
Net Income
Plus Depreciation
Change in Working Capital
Decrease (increase) in Receivables
Decrease (increase) in Inventory
Increase (decrease) in Accts. Payable
Increase (decrease) in Accrued Liabilities
Cash Provided (used) by Operations
Cash Provided (used) by Investments
Additions to PP&E
Other Investments
Cash Provided (used) by Investments
Cash Provided (used) by Financing Activities
Additions (reductions) to Debt
Net issues of Stock
(Dividends - Owner Draws)
Cash Provided (used) by Financing Activities
Net increase (decrease) in cash

2014
1,776,168
357,597
1,418,571

2015
1,807,883
361,576.65
1,446,307

2016
1,839,601
386,316
1,453,284

2017
1,871,318
392,977
1,478,341

439,512
572,776
82,514
95,221
1,190,023
228,548
7,535
221,013
221,013

451,971
90,394
600,000
131,888
1,274,253
172,054
49,500
122,554
122,554

478,296
91,980
650,000
141,888
1,362,164
91,120
48,003
43,117
43,117

505,256
93,566
700,000
141,888
1,440,710
37,631
46,431
(8,800)
(8,800)

221,013
95,221

122,554
131,888

43,117
141,888

(8,800)
141,888

(3,150)
(12,687)
8,661
309,058

(633)
(694)
19,029
272,145

(634)
(2,537)
1,269
183,102

(634)
(2,537)
1,269
131,185

(74,400)
(74,400)

(1,100,000)

(100,000)

(1,100,000)

(100,000)

(42,217)
(175,000)
(217,217)
17,441

800,481

(31,437)

(33,009)

800,481
(27,374)

(31,437)
51,665

(33,009)
98,176

365
Lill's RATIO ANALYSIS
Liquidity Ratios
Current ratio
Quick ratio
Conversion Period Ratios
Inventory-to-sale Convestsion period
Sale-to cash Conversion Period
Purchase-to-payment Conversion Period
Cash conversion cycle
Leverage Ratios
Total debt to total assets
Interest coverage
Profitability Ratios
Gross profit margin
Operating profit margin
Net profit margin
NOPAT margin
Efficiency and Return Ratios
Sales to total assets
Operating return on assets
Return on assets
Return on equity
DuPont and ROE
Net profit margin
Sales to tatal assets
Total assets to Total Equity
ROE

2014

2015

2016

0.90
0.30

1.47
0.46

3.07
1.07

140.44
6.98
49.97
97.45

145.65
7.24
63.40
89.49

137.85
7.24
68.92
76.16

0.46
42.97

0.64
#DIV/0!

0.70
#DIV/0!

0.80

0.80

0.79

###
###
###

###
###
###

###
###
###

3.58
0.46
0.45
0.83

1.86
0.18
0.13
0.35

1.27
0.06
0.03
0.10

0.12
3.58
1.86
0.83

0.07
1.86
2.78
0.35

0.02
1.27
3.35
0.10

2017

4.07
2.07
137.87
7.24
68.93
76.17
0.69
#DIV/0!
0.79
###
###
###
1.30
0.03
-0.01
-0.02
0.00
1.30
3.19
-0.02

1. In what ways have B&Bs philosophy and the entrepreneurs personal values impacted decision
to grow and finance their business?
Since B&B's philosophy is to finance their business by keeping ownership to protect their
products and the business model that Stephanie and Steve established, they managed their
business with free cash flow and debts.

2. What are the pros and cons of B&Bs owners wanting to keep 100% control of their business?

Keeping 100% owneship will benefit Stephanie and Steve in terms of control in their business
and stress. They would not have to be forced to change their business model or make undesirable
desicions because of another owner. Moreover, There would be less pressure from external
environment since no one could tell them what to do for their business although that means they
are responsible for all the decisions they make. The other disadvantage of keeping 100% ownersh
in B&B's case is that their growth speed might be slow from not having enough capital. If their
competitors were growing faster than them, the odds would be against them unless their products
or services are remarkably well enough to keep their customers.

alues impacted decisions

hip to protect their

ey managed their

trol of their business?

ontrol in their business

del or make undesirable
re from external
hough that means they
keeping 100% ownership
ough capital. If their
em unless their products