Hello I have a question for all you well established distilleries . If you were offered a buy out for your distillery , equipment, recipes, and all rights to your name and product names would you take it ? Would you take the money and run or continue to do what your doing and cashing in on the long game .
It would depend on the offer. Right now, I'm enjoying what I do, I'm good at it and I'm very profitable. But, I might be inclined to accept because I'm getting on and my health ain't great. However, I would be more open and would probably get a better offer once I've completed at least five years in the biz. The other problem is, I might take the winnings and try again - fixing my original mistakes. Sorta like house building.
I enjoy what I do, but if someone wants to make an offer on our distillery (partial or entire) I'm at least going to listen to what they have to offer.
So if anyone is seriously looking at purchasing a successful distillery and/or brand, give me a call =D
So you can look at it a bunch of ways, but there's two ideas that are the easiest to start from: You are your business or you are not your business.
1. You are your business: The business defines you. Without the business you don't have the skills/training/education or desire to do anything else. Your only option here is if you sell your business can you invest it in another distillery without signing a non-compete? if so would the person lower the money they would give you?
2. You are not your business: The business is a way to provide for you & your family. In this case would keeping the business be a better deal or would selling it be a better deal. Would you be signing a non-compete? If so can you limit it geographically? Or keep it fairly short? Can you get a job or invest that money in another business? Could you invest it in another distillery that you don't run, just invest in?
What's best for you & your family? For me it would take a lot to sell what little I have right now but I would sell if the price were right. My family is more important to me than my ego.
Interesting stuff thanks guys , guess it depends if a guy wants leave your family or leave them a bag of money . And weather I figure at my age do I want to start from scratch with in the confines of the non compete....lots to think about
Oops spelling error I meant to say it all depends if you want to leave your family a business or leave them a bag of money lol .
I guess the buy out would have to big enough top make it worthwhile. If you think about it, even a million dollars doesn't go that far these days. Out here in super expensive BC, it would gone in a flash. So, after taxes, fees, capital gains, debt payouts, etc. the buyout sum could shrink considerably. Therefore, if the business is currently profitable and manageable, it might be better to hang on for future opportunities. If the business is not making money, it might be better to sell, but your reward at the end will be even smaller.
Your exactly right when u think what it has cost to get up and running and be profitable a million bucks don't buy shit .
Have sold out in another industry- great decision. massive component of success is luck. You hit it, maybe a gold mine of it, realize your gold mine. If you sell out to the right people they'll pay you to keep running it. Non competes run out and you can start fermenting somewhere else some time later. You can also go distill other stuff in the mean time (what I am doing).
You developed this skill set, you can develop others. Maybe you're not Jim Beam, maybe you're Jeff Bezos and you don't even know it.
Just .02 from a dude with a stack full, jack! Rock on, congrats on moving cases! (remember Murphys law; Also a lot of people who will never get legitimate offers to sell will tell you not to. In this scenario you have few peers, especially on this board. This isn't criticism this is me calling a spade a spade. Theres way more fifty gallon pots for sale than acquisition offers on the boards.)