It’s the end of the calendar year, and for most business owners, it’s the time to take stock. What worked, what didn’t? What are my goals for next year? What can I do to position myself for a successful 2026? For those in the beer and spirits sector, it’s worth noting that this industry continues to evolve in ways we’re watching closely, given the growing number of alcohol-related businesses we review.
There’s one step I advise all owners to take before the end of the year: get a valuation of your business. While you’ll need to provide some basic financial and operational information, getting started is as simple as a call or email — and the process is far easier and less time-intensive than most owners expect. That makes it a very realistic item to check off your to-do list, regardless of how busy your business is right now.
Here’s why it’s important:
Most owners have no idea what their company is worth in the current market. They know what they’ve invested, they know what they’re selling, and they usually factor in blood, sweat, and tears, which gives them a skewed perception of the business’s actual value. Owners also get caught up in news cycles and worry about losing value every week or figuring out the right time to list.
The remedy for this is a professional opinion of value from a broker with experience in your industry. Brokers typically do not charge for this service, which takes into account what buyers base their offers on. We factor in geography, distribution, and market share, as well as product inventory and Seller’s Discretionary Earnings (SDE), which measures what a new owner can expect to earn from the business. An objective analysis of your company’s worth can make decision-making easier, even if selling the business is a few years down the road.
Having an accurate number makes it easier to make financial decisions and determine your business strategy. It may be that your business is worth more than you estimated and might draw interest from several buyers. Or it may turn out that you’d be better off to stay in the business for a few years and grow it before putting it on the market.
The determining factor is how much you need to fund the next phase of your life, whether it’s retirement or moving on to another business. At the end of the year, your accountant and financial advisor will have a clear picture of where you stand, and they can help you make decisions about how best to achieve your financial goals.
Having reliable information makes it easier to talk with your family about what’s next. The holidays are always a season for reflection on the past year and looking forward to the new year. You have the time for meaningful discussions with your partner or spouse about where you see yourself in a few years. Selling a company is a big accomplishment, and it’s a step that can change your life forever. What that change looks like is a very personal, and often emotional, conversation, so it’s wise to have actual numbers to base it on.
Your age and financial position are the most important things to consider when you think about what’s next. Your partner can help you visualize what might come after you’ve left your business and your identity as an owner and a boss. They’ll also be helpful in determining how much gas you have left in the tank (on your own, you might not be the best judge of it).
Most owners wait until it’s too late to start the process of selling. They often don’t get an opinion of value until their situation forces them to sell. The future is unknowable, and a personal or health crisis could make the decision to sell urgent, putting you and your family under duress. Armed with clear and reliable data, you’ll be in a better position to make the decision to sell on your own terms.
You should always make the decision to sell based on your own goals; there’s no way to time the market or predict consumer trends. Industry data, no matter how detailed, is always a look in the rear-view mirror.
So I invite you to take one small step toward your future within the next few weeks. Find out what your business is worth, then sit quietly with the information and see how you feel. You don’t have to make any decisions yet, but you’ll be more ready to make good ones next year.
