DUE DILIGENCE & FINANCE
Do you have a need for more money to expand your growing brewery but no idea where to secure it at a reasonable cost?
In fact, the craft beer business is very cash intensive with the average annual capital investment exceeding $50,000.
A sampling of questions that need immediate answers include:
- What type of Investors will best match your brewery’s growth stage?
- Should you consider a merger or joint venture for improved performance?
- How long will you operate the business before selling to a for a big payday?
Your beer is the “talk of town” and you are rapidly outgrowing the original facility and its 7-barrel brewhouse. Suddenly, you must decide on expanding in place, relocating or outsourcing a portion of your operation to meet market demand. These choices all have long-term implications on your financial goals for the business. Thus, it is critical as an entrepreneur to have the end in sight as you look to updating your craft brewing venture.
We have discovered that most craft brewers do not know the “real” value of their business in today’s rapidly shifting marketplace. This ultimately will be a critical element when decisions are being made on buying new equipment or acquiring another company. The ability to objectively assess your business as a rising star or sinking ship is imperative for rational decision-making.
Our Craft Beer Insights team can provide critical input on finding the capital needed at a reasonable cost. We provide due diligence support including operations assessment, brewery valuations, capital structure and contract negotiations.
- Performance Assessments – We can do a one-day evaluation of your current operational approach and provide a clear strategy for moving forward. Our advisors work closely with all key departments to ensure everyone is “rowing” in the same direction.
- Operational Improvements – We can help your team assess exactly where and how to most efficiently produce your beer line-up. We assess the most critical changes needed to drive down your cost of goods through more efficient purchasing and brewing cycles.
- Demand Forecasting – We can assist your team in matching marketplace demand with your seasonal brewing schedule. Our advisors can identify whether having multiple seasonal beers really is beneficial to your bottom line.
- Contract Negotiations – We identify the most advantageous approach in securing a strategic partner for your brewery. Our advisors will help assess whether an acquisition, sale or joint venture will yield the desired financial returns and level on ongoing control your team desires.