Food, Retail & Hospitality · Buyer guide
Buying a Brewery & Taproom business
Published · Reviewed by The Diligence Standard Team · Updated
a Brewery & Taproom can look attractive on headline earnings while asset condition, regulation, customer behavior, inventory, people or owner dependence materially change what the buyer actually owns.
How the business works
On-premise versus wholesale mix, barrel/capacity utilization, product margin, distributor rights, licensing, inventory and equipment determine value.
Risks to test
- Alcohol licensing/approvals
- Aging brewing/canning equipment
- Distributor dependence
- Inventory/raw material exposure
- Founder/brewer dependence
- Lease/site obligations
Evidence to request and reconcile
- Sales by channel/SKU
- Production records
- Distributor agreements
- Licenses
- Equipment/maintenance
- Inventory
Decision questions
- What channel creates real contribution?
- What licenses/approvals are required?
- What equipment needs replacement?
- How concentrated are distributors/accounts?
- How dependent is product on founder/brewer?