Listing ID: 80971
Business Overview
For beer loving entrepreneurs, here is an opportunity to purchase a cool brand, established taproom and a brewing operation at a price below replication cost. The taproom grew at a pace that rapidly absorbed most of the production capacity of the brewery. While most of the taps in the taproom, are of course, used for our client’s brewery branded beer, additional “guest taps” serve other select beer, cider and wine. Additionally, the taproom food service is provided by an embedded food vendor. The food vendor’s menu is popular “easy prep” food items not requiring a full kitchen facility. The customers love the food and it keeps them in the taproom longer. The taproom provides live entertainment two to three times per month. The business is semi-passively operated with the owner only working about five to 10 hours per week primarily overseeing managers, maintaining social media venues and doing the books. The taproom is fully staffed including a full time manager and the brewery employs a full-time brewer. Both the manager and brewer are interested in continuing with business after a sale.
Financial
- Asking Price: $350,000
- Cash Flow: $50,677
- Gross Revenue: $417,372
- EBITDA: N/A
- FF&E: $263,000
- Inventory: $12,000
- Inventory Included: Yes
- Established: N/A
The taproom is located in one of the most densely populated (and still growing) areas of Ada County. It is conveniently located near the corner of two major arterials. The taproom is about 2,100 square feet and has a seating capacity of 75. In addition, a large +/-2,500 square foot shared outdoor seating/patio area nearly doubles the available seating capacity. The taproom has an onsite commercial grade pilot (miniature) brewing system. The pilot brewing system allows the brewer to test new recipes without having to brew large test batches in the main brewery that may not be adopted. Additionally, it allows the taphouse to admit minors since with the pilot system it is not considered a bar. The brewery is located in a separate lower rent building a short distance from the taproom. The brewery primarily produces for the taproom but does have a couple of small wholesale accounts. Given the popularity of the brand, the company has been asked by a larger distributor to expand production in order to accommodate selling to retail outlets and area restaurants and bars. The seller is going to pass that opportunity on to the next owner of the business. Such an expansion would require adding more and larger fermenters and brite tanks.
The sellers love the business and brand. They are very happy with the investmen
An individual or team of owners with management skills, capital and a passion for great craft beer will be a perfect fit for this early growth stage business. Alternatively, another craft brewer, that does not currently have a remote taproom, could relocate our client’s production facility into its existing craft brewery, with the double benefit of additional economies of scale in production and obtaining a great taproom location.
Additional Info
The deal does include inventory valued at $12,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell companies. Nonetheless, the real reason vs the one they say to you may be 2 completely different things. For instance, they might say "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might just be reasons to try to conceal the reality of changing demographics, increased competition, current reduction in revenues, or a range of various other factors. This is why it is very vital that you not count completely on a seller's word, however instead, make use of the seller's response along with your overall due diligence. This will repaint a much more reasonable picture of the business's present situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can mean that profit margins are too small. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be fulfilled or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in brand-new customers? Often times, businesses have repeat customers, which form the core of their daily revenues. Certain aspects such as brand-new competitors growing up around the area, roadway building, as well as employee turn over can influence repeat clients as well as adversely impact future incomes. One vital thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business regularly, the better the possibility to construct a returning client base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the neighborhood mean home income effect future earnings potential?
