To Sell or To Buy: The Brewer’s Consolidation Conundrum

Updated on: April 3, 2024

The article authored by Matt LoCascio, Principal of SC&H Capital was originally published in Brewer Magazine on August 9, 2023.

The recent boom in the American craft brewing sector has led to a saturated market that has made succession planning a challenge. Brewers face the conundrum of deciding whether to sell their business or buy out smaller competitors to maintain a competitive edge.

“There is a perception among some brewers that selling makes you a sellout,” says Matt LoCascio. “But selling to the right partner—a like-minded operator that values your brand, customers, and employees—is a healthy succession plan that can ensure long-term profitability.”

This is exactly the approach the SC&H investment banking and advisory experts took with DuClaw Brewing Company to allow founder, Dave Benfield to focus more on expanding the brand and less on daily operations.

So, for brewers considering a sale, the first question is, is your brewery big enough to attract interest from potential buyers, or do you need to acquire smaller breweries to reach a capacity and revenue that will catch their eye?

Your answer hinges on a careful analysis of your business and the potential for cost-saving synergies. Matt LoCascio shares four key factors to assess when considering selling your brewery and how to determine when it’s the right time to sell.

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