Brewery Valuations
Breweries produce a wide variety of alcoholic beverages for restaurants, bars, convenience stores, liquor stores, etc… According to IBIS World, there are about 9,000 breweries throughout the country. Together, these businesses generate over $6 billion in revenue each year. As such, operating a brewery can be lucrative. If you are looking to buy, grow, or sell a brewery, a brewery valuation is crucial. As part of a business valuation for a brewery, business appraisers evaluate the financial health of the business. This information helps business owners make strategic decisions to maximize the value of a brewery.
As a professional business appraiser, Peak Business Valuation values breweries regularly. In this article, we discuss the brewery valuation process. Each heading provides a link to a related article. Click these links to learn more about how to value a brewery!
Peak Business Valuation, business appraiser, frequently helps individuals looking to buy, expand, or sell breweries. As such, we are happy to provide you with a business valuation for a brewery. In addition, Peak can discuss any questions you may have on valuing a brewery. Schedule your free consultation with Peak Business Valuation below!
Valuing a Brewery
Business appraisers analyze various factors during a brewery valuation. First, they gather important financial data from financial statements. This allows them to determine the most applicable valuation approach for the brewery. Some common valuation methods are the market approach, the income approach, and the asset approach. The most common approach for valuing a brewery is the market approach. We highlight this approach in the following section.
As part of the valuation process, valuation experts determine the fair market value of a brewery. Business appraisers will disclose this information in the valuation report. This report also highlights the strengths, weaknesses, and opportunities of a brewery. Business owners can use this information to increase the value of a brewery. To learn more, schedule a free consultation with Peak Business Valuation!
Valuation Multiples for a Brewery
Valuation multiples are a key component of the market approach. Multiples are financial ratios that measure the value of a business based on metrics such as cash flow, sales, and earnings. Valuation analysts calculate the best multiples for a brewery during a brewery valuation. At Peak Business Valuation, our appraisers frequently work with SDE multiples, EBITDA multiples, and REV multiples. See Valuation Multiples for a Brewery for more information!
Value Drivers for a Brewery
When valuing a brewery, business appraisers assess its key value drivers. These are factors that have a strong influence on the value of a brewery. Understanding value drivers for a brewery can help business owners succeed in this industry.
One of the most important value drivers for a brewery is having a diverse product mix. Offering a variety of beverages can help meet diverse consumer demands. This has a positive influence on sales revenue and profitability at a brewery. It is also vital for a brewery to have effective quality control. Producing high-quality products often results in a good reputation and revenue growth.
Value drivers help business appraisers understand the overall performance of a brewery. During a business valuation for a brewery, valuation experts compare your brewery’s performance to competitors. This can help operators understand how to maximize the value of a brewery. To learn more, see Value Drivers for a Brewery.
How to Value a Brewery
There are several common business valuation approaches for valuing a brewery. Generally, Peak’s business appraisers use the market approach and/or the income approach. The market approach uses valuation multiples for a brewery to determine the fair market value of a brewery. Contrarily, the income approach assesses the cash flow potential and risks of a brewery. When valuing a brewery, valuation analysts often use a combination of these valuation approaches. See How to Value a Brewery to learn more.
Business Valuation for Buying a Brewery
For some, purchasing a brewery may be the best path to business ownership. This is a fast way to establish a strong reputation and cash flow. If you are preparing to buy a brewery, a business valuation is instrumental. Understanding the fair market value of a brewery can help a brewery buyer negotiate a fair purchase price. Additionally, valuation experts can help buyers understand how to maximize the value of a brewery after the purchase.
As a business appraiser, Peak Business Valuation frequently helps individuals looking to buy a brewery. We are happy to provide you with a brewery valuation. Start now by scheduling a free consultation with Peak Business Valuation!
Business Valuation for Selling a Brewery
Business valuations are also helpful if you are looking to sell a brewery. The valuation report can help brewery owners determine a listing price for a brewery. In addition, a business valuation provides insights that help in negotiating with buyers of a brewery. These insights can also help operators increase the value of a brewery prior to selling. Schedule a free consultation with Peak Business Valuation to learn more!
Machinery and Equipment Appraisal for a Brewery
Breweries use a variety of machinery and equipment. Common brewery equipment includes brew kettles, fermentation tanks, cooling systems, filtration, bottling lines, etc… The value of this equipment has a direct impact on the overall value of a printing business. As such, it is crucial to obtain a brewery machinery and equipment appraisal. An equipment appraisal for a brewery can help brewery owners make decisions on buying and/or selling brewery equipment. In addition, knowing the value of machinery and equipment is vital when buying, expanding, or selling a brewery.
To receive a machinery and equipment appraisal for a brewery, reach out to Peak Business Valuation today!
Gift and Estate Valuation for a Bakery
If you plan to gift any part of your brewery to family members, it is vital to obtain a gift and estate valuation. Gift and estate valuations are also useful if your brewery is part of your estate. With a gift and estate valuation for a brewery, operators can effectively prepare for the future. For example, this brewery appraisal can help business owners plan for gift and estate taxes and minimize tax liability. Schedule a free consultation with Peak Business Valuation to learn more!
SBA Financing for a Brewery
Finally, operating a brewery can be costly. As such, the Small Business Administration provides several convenient and affordable loans for small business owners. SBA loans for breweries feature low interest rates, low down payments, and repayment terms of up to 10 years. Additionally, SBA loans are backed by the Small Business Administration. For this reason, SBA lenders are more willing to approve the loan to applicants who meet basic requirements. To learn more, see SBA Financing for a Brewery.
Peak Business Valuation works with over 90 SBA lenders throughout the United States. By working with Peak, you can connect with an experienced brewery SBA lender. Peak can also guide you in structuring a brewery transaction. Additionally, Peak Business Valuation is happy to provide you with a brewery valuation and answer any questions you may have on how to value a brewery. Start now by scheduling a free consultation with Peak Business Valuation below!
