If you’re ready to sell your brewery or distillery business, you want two things: a speedy closing and the best selling price you can get. That’s why it matters that the broker you choose has deep industry knowledge and experience.
General business brokers, no matter how skilled they are, can’t be expected to know everything about a specific industry. They might be selling a restaurant one week and a dry-cleaning business the next week. That also means that their database of buyers and listing sites will probably be equally generalized.
That’s why I’ve chosen to work primarily in the brewery and distillery industry. It’s an industry I’m very familiar with and whose products and lifestyle I’ve been engaging with for years. I’m a consumer and an aficionado, and so are many of the buyers for your business. That means I speak their language and can help them make an effective evaluation of your product.
Here are some other reasons experience matters:
In any industry, knowledge is power.
The beer and spirits business is like no other; it might be years before a distiller makes a sale, let alone a profit — no matter how great their product is. I understand that and can help buyers assess the company’s potential in the market in addition to the value of its current assets.
An industry specialist will dedicate themselves to learning, following news and thought leaders closely to understand trends. I recently returned from the American Distilling Institute (ADI) Craft Spiritsconference in San Antonio, where I presented an educational session. Several attendees in my audience expressed concern over the recent barrage of gloomy news about the industry. Should they be panicking? Considering selling now, before things get worse?
The media is reporting that Gen Z is drinking much less than previous generations. Cannabis is cutting into sales. Ready-to-Drink beverages are winning market share from traditional spirits. It’s not surprising that owners are thinking about getting out while the getting is good.
Specialists have a network of reliable expertise to draw on.
But my research and my conversations with industry experts give me the knowledge to help owners understand what’s really happening. The pandemic lockdowns skewed many industries’ data, perhaps none more so than the alcohol industry. During lockdowns, people were unable to attend events or visit restaurants and bars. They bought more alcohol than they usually did, for lots of reasons. They essentially became a shadow warehousing operation for distillers and distributors. And the industry responded to market demand by producing more and more product.
Much of the bad news we’re hearing about the state of the industry is simply a normalization. Sales are down from the artificial peak during the pandemic. We’ll know more when we get a couple more years of data. The alcohol industry isn’t going anywhere, and owners should choose their time to sell based on their personal goals, rather than their fears about the future (that’s part of the value of attending industry conferences).
Specialists work with other specialists. And they have a database of qualified buyers looking for an opportunity in the exact business you’re in.
One last point in favor of choosing a broker with industry experience: their network of professional partners and database of buyers will also be specialized. The lenders and other professionals I choose to help me get deals done understand the business and how distillers make money. They can assess risk and make lending decisions more quickly than lenders who never handle sales in the industry.
My database is filled with motivated buyers looking to acquire a distilling company. And I’ve seen an uptick in interest over the past year. Smart buyers understand how to read trends and when to take risks.
More buyers in the mix means the owner will get better terms and higher offers. If you’re going to be selling your business in the next couple of years, look for someone who understands your industry.
If you are ready to find out what your business is worth now, click here for a confidential and complimentary review.
