How Much is Your Craft Brewery Worth?

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Maybe you will never sell your craft brewery. But it still makes sense to know how much it is worth. Sometimes initial investors want to cash out. Maybe you are looking for new, larger investors. Maybe the bank wants to know so you can increase your credit line. Valuations done properly are intensive numerical exercises combined with some expert judgment and comparison with similar companies. There is not a lot of published information about valuations because they tend to be confidential, except in the rare case of a public craft brewing company.

Another benefit of understanding the value of your company is that you have the opportunity to improve the key drivers of that value, so if the day comes when you want to reap the financial rewards of your hard work you can monetize all your potential. The steps you take today, including pricing, margins, capital expenditures, wholesaler selection and distribution agreements, along with many other factors, will have a significant impact on your future valuation.

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