4 Things to Consider Before You Sell a Brewery in Charlotte, NC
Whether you own a brewpub, microbrewery, or taproom, it’s no secret that the craft beer business is booming. In 2018, craft beer sales took over 24 percent of the $114-billion industry. Every owner will exit their business eventually, and the sooner you begin to plan, the better. If you’re considering selling your business, follow these four tips to sell a brewery in Charlotte, NC.
4 Considerations When Selling a Brewery in Charlotte, NC
The day-to-day aspects of owning a craft brewery take up a significant amount of time. Chances are that unless you’ve been proactively setting aside time to prepare your business for sale, you aren’t ready to sell. The good news is that even if your plans to exit are a ways off, taking these steps can help you plan for the future and improve your business.
Give Your Craft Brewery a Competitive Edge
The rapid growth of the sector and big beer players working to outpace small breweries means you have to offer more than just good beer. To increase the perceived value of your brewery, put a growth plan in place. Take steps to improve packaging, participate in beer festivals, and find ways to differentiate your brews. Also, pay attention to trends in the industry. The Brewers Association offers a number of insights across craft beer sectors. Taking care to stay up-to-date will increase the value of your business, and make it easier to find someone interested in buying a brewery in the Charlotte, NC area.
Assess Any Regulatory Issues
The craft brewing industry is heavily regulated. In North Carolina, if you plan to increase the amount of beer you produce to more than 25,000 barrels per year, sell to a wholesaler, or expand your brewery outside of malt beverages, you’ll need to apply for additional permits. Ensure that all of your licenses, permits, and fees are up-to-date and that you have plans in place to keep them that way. A mistake in your regulatory compliance can be incredibly costly and is a red flag to potential buyers.
Consider Your Intellectual Property
Chances are, a buyer isn’t interested in your kegs and tanks. Instead, they want the brand you’ve built and the recipes and processes behind it. Make sure that you’ve trademarked your beer names and logos, as well as protected your recipes with non-disclosure agreements.
Go Over Financials
Before you consider selling your Charlotte, NC brewery, make sure that your financial statements are in order and accurately represent your business. Any serious buyer will want to see tax statements and financial records that confirm profit margins.
In the same vein, you’ll want to assess how the structure of your business will affect your tax planning. Make sure you understand the impacts of selling before you start meeting with potential buyers.
Whether you specialize in IPAs, lagers, or offer a variety of great beer, it’s crucial to take the time to make sure your brewery is well-positioned for sale. Before you list your Charlotte, NC brewery for sale, consider working with an intermediary. VR Business Brokers has a successful track record selling businesses in the greater Charlotte, North Carolina area. Get in touch with our team of experienced business brokers today!