DavidButlerFor more than 40 years, HSSK has provided expert insight to clients across a range of industries. Now we’re extending that expertise into craft food and beverages. Using an actual operating brewery as a case study, David “Beau” Butler, who leads our craft beverage valuation practice out of our Houston office, has written an article for the Craft Beer Brewing Industry Guide that provides brewers with a soup-to-nuts overview of the valuation process.

 

Beau starts off by identifying a variety of situations that require brewers to get a valuation, and cautions brewers about the importance of hiring an expert:

 

“In our industry, we see a fair number of dabblers—people who perform two or three appraisals each year. Hiring an appraiser with that kind of experience base would be equivalent to hiring a guy who drinks a few IPAs at Christmas to be your master brewer. When it’s time to value your business, use an appraiser who spends 100 percent of his/her time on valuation.”

 

After providing criteria that help a brewer to get the right type of valuation, Beau walks the readers through a detailed case study where he covers due diligence, developing a forecast, building up the cost of capital and performing a discounted cash flow analysis.

 

You can read the full article on the Craft Beer Brewing Industry Guide website. Have additional questions related to brewery valuation? Feel free to This email address is being protected from spambots. You need JavaScript enabled to view it.. We look forward to hearing from you!