FOR SALE Houston-Area Small-batch Craft Brewery and Taproom

Houston-Area Small-batch Craft Brewery and Taproom for Sale 19989

Asking Price: $825,000

2021 Projected Sales: $750,000

FF&E: $250,000

WIP/inventory/AR: $37,000

2021 Projected Adjusted EBITDA: $240,000

texas business valuation - Brewery Craft Beer

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.  2021 Sales are tracking to $750,000 with Owner’s Cash Flow of $240,000.

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.

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.

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.

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

Price:  The asking price for the assets of the business is $825,000 with $125,000 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.

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For information, reference Houston-Area Small-batch Craft Brewery and Taproom for Sale 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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