Listing ID: 80962
An Idaho iconic brand, our client company is one of the largest and most established breweries in Idaho. Its craft beers have generated a loyal customer following and are winners of numerous craft beer awards. In addition to production of conventional kegs, the company contract for the canning of its 12 and 16 ounce cans. Products are distributed through one of the largest beverage distributors in the region. The company’s beers can be found in some of the largest grocery stores in the region, as well as convenience stores and other retail beverage outlets including bars and restaurants. Additionally, the company operates a popular taproom at its production facility. With a production capacity of approximately 5,000 barrels per year, additional capacity remains to grow revenues significantly. The brewery employs six full time including owner/brewer and an owner manager. The Brewer is willing to continue working for the company for at least one year at negotiated terms.
- Asking Price: $400,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $328,000
- Inventory: $40,000
- Inventory Included: Yes
- Established: N/A
The business currently leases an 8,200 square foot facility with the taproom comprising less than 2,000 square feet of the facility. Nearby restaurants provide quick food delivery to the taproom on order. The location is highly visible and in a rapidly evolving area.
After starting and growing the business and establishing a solid foundation and
It is indeed a rare opportunity to acquire such a well respected craft beer brand. The company has excellent distribution relationships, especially considering the competitive operating environment. The production facility is well maintained with existing capacity to grow. All the business components are in place and the company is poised for growth. The sellers are open to assist a buyer for a smooth transition for a negotiated period of time and terms.
This business is an excellent opportunity for an entrepreneurially-minded individual with strong management skills and working capital, or another brewery interested in expanding its business through acquisition of a powerful, regional craft beer brand.
The transaction shall include inventory valued at $40,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell businesses. Nonetheless, the real factor vs the one they say to you might be 2 totally different things. As an example, they may claim "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competition, recent decrease in earnings, or a range of other factors. This is why it is extremely vital that you not rely totally on a seller's word, however instead, use the seller's response combined with your overall due diligence. This will paint an extra practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses borrow money so as to cover things like inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can suggest that earnings margins are too small. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that have to be met or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract brand-new clients? Often times, operating businesses have repeat clients, which form the core of their day-to-day revenues. Particular aspects such as brand-new competition growing up around the location, road building and construction, and also employee turn over can affect repeat clients and also negatively affect future revenues. One important thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business on a regular basis, the better the chance to build a returning consumer base. A final idea is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Just how might the regional median house earnings influence future earnings prospects?