Houston Craft Brewery Exit Planning Results in PREMIUM SALE
Projected Sales: $750,000
FF&E: $250,000
WIP/inventory/AR: $37,000
2021 Projected Adjusted EBITDA: $240,000
The Company is a well-established greater Houston-area, craft small-batch brewery and taproom producing high quality artisanal beers, served in their tap room and around the region. The company serves in their taproom and distributes draft beer to local bars and restaurants.
They brew a broad range of styles in addition to their customers’ most popular beers. Drawing from a repertoire of over 50+ beers and counting, typically brewed in small batches, the business is well-established with a loyal following built over its long and profitable history. Though the greater Houston area has over 70 breweries and brewpubs, this brewery is regularly mentioned as one of Houston’s best breweries. Sales are approximately 54% Taproom, 26% beer to go, 16% Self-distribution Kegs and 4% other/merchandise. The business is very profitable. The seller states that the business has excellent matching books & records and that they can prove all sales, expenses and income. Sales are tracking to $750,000 with Owner’s Cash Flow of $240,000.
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The craft brewery offers award-winning beers in a relaxing, spacious environment. The American beer lover craves variety and novel beer experiences, and this brewery has the distinct advantage of offering an exclusive experience that both beer lovers and non-beer lovers seek. Their customers are primarily local patrons looking for a unique, one-of-a-kind experience.
As far as we know, NO ONE in America has valued, exit planned, and sold more craft brewery or brewpub businesses than Adam Noble Group! We are THE industry expert!
“The dust has settled and I can say with confidence that this deal has exceeded our expectations on all fronts. We found the right buyer with the right terms in a very short amount of time. Your service was attentive and proactive throughout the process. This experience was as close to perfect as possible. There were a couple hiccups but as I said, at the end of the day we got a deal that we’re proud of and happy with. I’ll also add that it was really impressive that this was all done without anyone finding out about our sale before the close date. That was probably the most common question I got from peers – “How did you find the buyer without anyone knowing you were up for sale?”. This is quite an impressive feat of alchemy!
If you have any prospective clients looking to talk to someone who has used your service, I would be more than happy to share my experience, which was very positive.”
John Holler, President, Holler Brewing
The brewery equipment was manufactured by one of the top producers in the brewery industry. Current lead time for this equipment is approximately 12-18 months. The equipment was designed to provide maximum versatility. The brewhouse and every tank were designed for space and flexibility, taking advantage of the brewhouse layout. The business has plenty of additional production and capacity that a new owner could utilize.
Although the industry is very competitive, the business has superior beer, excellent customer service and a destination venue with many growth opportunities. The business also has excellent books & records and is recession-resistant. The brewery is operating at about 60% capacity, allowing substantial growth with little to no incremental investment. There are many opportunities to increase sales and profits. Annual capacity can be increased by adding fermentation tanks, varying production methods, beer selection and production scheduling. As this craft brewer continues to grow its loyal fanbase, there is an IMMEDIATE opportunity to further expand sales and distribution through the Houston region.
“Jeff represented the seller in our transaction and was an absolute joy to work with. He was extremely professional, fair, responsive and was happy to help in any way he could. He brings a wealth of experience and contacts to the table that benefits everyone in the room and I could not recommend him enough.”
Ray Brandhurst, Bayou Brewing, LLC
Employees:
The business operates with well-trained, satisfied, motivated employees, plus a part-time owner overseeing the business. Employees enjoy working at the brewery and handle 95% of the business operations. The owner believes that all managers, brewers and staff are willing to stay.
Facilities:
The business occupies a long-term leased space, leased at $6500/mo including NNN.
SOLD!! Sale closed in 90 days!! We can sell YOUR Microbrewery Business, too!
Competition:
The craft beer industry is very competitive. The business attracts customers from the local neighborhood and major metro areas in Houston, Texas. Though the greater Houston area has over 70 breweries and brewpubs, this brewery is regularly mentioned as one of Houston’s best breweries. Despite the presence of competitors, the business has quickly developed a loyal following and has substantial growth opportunities.
Growth & Expansion:
Beer is sold primarily via a) on-site sales (taproom and “To Go”) and b) off-site account sales. The brewery operates at approximately 60% capacity. There is plenty of existing capacity that can be sold at high margin. A new, energetic owner can further increase sales & profits in many ways: 1) Increase outside sales, 2) Increase production and distribution, 3) Expand tap room and open hours, 4) Add food or kitchen. More detailed actions are described in the Confidential Business Profile.
Support & Training:
Seller will train buyer for 8 weeks included with the purchase price. Seller is willing to provide additional training at mutually agreeable fixed compensation to assist with general management functions for a finite period.
Reason for Selling:
Relocation after successful transition
Craft Brewery Exit Planning
NOTE: BUSINESS IS SOLD AFTER EXIT PLANNING, for PREMIUM Price. The asking price for the assets of the business is $XX with $XX cash due at closing, assumption of 1) keg deposits of $4,000 and 2) Gift Cards of $1,600 (valued at 80% of outstanding balance) and balance financed by an SBA 7a loan. The seller is willing to finance up to 10% of the purchase price to a purchaser qualified/approved by the Seller, if required by a commercial lender. THE SELLER PREFERS TO SELL FOR ALL-CASH. All financing is to be personally guaranteed. The assets include inventory of $37,000, Accounts Receivables of $0 (no billed accounts) and FFEV (Furniture, Fixtures, Equipment and Vehicle) valued at $250,000. Inventory such as kegs, materials and merchandise will be valued at cost. WIP (Work in Process) and Finished Goods, will be collectively valued at raw materials cost + 50% of the difference between selling price and raw materials cost. The price will be adjusted for actual inventory, work in process (WIP), outstanding gift cards and accounts receivables as of the sale date
NOTE: The sale of a business is confidential and discreet; PLEASE DO NOT VISIT THE BUSINESS OR SPEAK WITH ANY EMPLOYEES.
We know about many businesses that are for sale but might not be advertised. Check out www.adamnoble.com for more information and consider registering your criteria as a purchaser.
For information, reference Houston-Area Taproom, Small-batch craft brewery exit planning 19989 and contact Jeff Adam, PE, MCBC, FRC, CBB at Adam Noble Group, LLC
Phone: (817) 467-2161
www.adamnoble.com
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KEYWORDS:
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During 3 decades of M&A service, Jeff Adam has successfully completed the sale of over 825 businesses and advised or completed 1,000’s of business valuations and exit plans. An entrepreneur in his own right, he has started and grown 12 companies in fields including international finance, B2B services, business valuation, construction, screen printing, Mergers & Acquisitions, engineering, and manufacturing. Jeff has donated his time as a distinguished speaker at numerous national & international conferences since 1977 covering topics such as environmental services, engineering, media, craft breweries, exit planning, business valuation, charitable giving, management, business brokerage and M&A fields.
Jeff is President of Adam Noble Group, LLC, a national M&A Advisory firm, professionally valuing, exit planning, and confidentially selling profitable businesses owned by exit-motivated business owners to qualified strategic, corporate, private equity, partners, management, and financial buyers. The team establishes rapport, builds trust, and educates business owners in the steps to meet their goals as they prepare and achieve the discreet, confidential exit of their business. The firm exclusively represents sellers of $1M-50M value enterprises and endeavors to transfer their businesses to qualified, capable acquirers who will build upon the seller’s vision, goals, culture, and history. Jeff maintains lifelong repeat and referral relationships with sellers, their acquirers, and service providers.
Adam Noble Group has multiple M&A and business broker specialties: Manufacturing, Aerospace Defense Industry, Oilfield services, Technology, Construction trades, Craft Breweries, Partnership Buyouts, Service, and Wholesale Distributors.
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