In the protein bars market, the rarity of what BUILT Brands hopes to achieve shouldn’t be overlooked, but that doesn’t mean it won’t have ample exit optionality. So, a few weeks ago…citing those elusive “sources familiar with the matter,” BUILT Brands (maker of BUILT bars) reportedly hired an investment brand to explore an exit that could potentially value the protein bar producer at more than $1 billion. And I’m making such a big fuss about that financial echelon mainly because (even with plenty of “upper middle market” deals recently) there have only been two verifiable examples of billion-dollar exit events since the creation of the modern protein bar category about three decades ago. The first was Simply Good Foods acquiring Quest Nutrition for $1 billion in August 2019. Then, about five years after that M&A activity…an international private equity firm became the lead investor in Vitamin Well Group (maker of Barebells) that valued it at around $3.3 billion. But from my understanding, the product origin story began as basically an unsuccessful “garage type hobby business” until CEO Nick Greer was made aware of it through friends and invested (partnered) with BUILT Brands sometime in 2018. Then, after a few years of growth…Nick Greer bought out his business partner, which I assume coincided with a collection of key business events in 2020. These included relocating headquarters (and opening a new production facility), returning to its original proprietary bar formulation, developing its new “puff” bar concept, and announcing USANA Health Sciences made a minority investment in BUILT Brands. However, like any great “math word problem,” only some details truly provide value in determining the correct route before solving our billion-dollar question! Though, maybe most impactful to BUILT Brands (especially if also observing contagion effects) revolves around the nuanced strategic shift sparked by its “puff” bar line extension. Leaning into the famous derogatory categorical statement, that protein bars are basically just “candy bars with added protein,” BUILT Brands created a comparable (but guilt-free) confectionery (candy-like) consumption experience. And consumers have fallen in love with the BUILT Puff Bars combination of its nutritional profile, unique marshmallowy texture, and wide variety of popular dessert-like flavors. Equally, since protein bars are mostly a contract manufacturing “follow the leader” dominated category with a “sea of sameness” market composition…BUILT Brands not fearing form factor uniqueness (complexity) proved to be an important decision. Moreover, by possessing its own manufacturing facility…BUILT Brands retained defensibility from the production process of that (commercially popular) differentiated product. And these strategic decisions will prove significantly valuable towards the quest for a billion-dollar exit, as interested suitors in BUILT Brands (especially certain parties) should fully understand these are non-negotiable when deriving any kind of long-term competitive advantage across the “protein snacking” space. So then, do I honestly think BUILT Brands will be acquired for a billion dollars (or more)? Based on insights trusted parties have shared with me regarding the financial statements, the M&A transaction value for BUILT Brands will most likely land somewhere materially above the $1 billion paid for Quest Nutrition and below the $3.3 billion implied valuation for Vitamin Well Group.