Dec 10 2024 34 mins
Show Notes:
- Introduction to Jeff Bach: Jeff discusses his background as a serial entrepreneur and his transition into business brokerage, focusing on the spirits, beer, and wine industries.
- Why Jeff Chose Business Brokerage: He shares his passion for being involved in deals and helping others through the process, stemming from his previous experience in business ownership.
- Explaining the Role of a Business Broker: Jeff describes how business brokers, like real estate agents for businesses, help sellers find buyers and facilitate negotiations and closings.
- Viability of a Business for Sale: Jeff talks about assessing whether a business is viable for sale and the importance of matching seller expectations with market reality.
- Key Differences in Alcohol Business Valuation: He explains how alcohol businesses, especially those producing aged products like whiskey, have unique valuation factors such as aging inventory and intangible assets like formulas and expertise.
- Challenges in Selling Alcohol-Related Businesses: Jeff highlights the difficulties in selling alcohol businesses, such as valuing products like whiskey and the impact of a brewmaster or distiller leaving.
- Preparing for a Business Sale: He advises business owners to plan ahead for an exit strategy, ideally starting 3-5 years before they intend to sell to maximize their business’s value.
- The Importance of Staging a Business for Sale: Jeff compares staging a business for sale to real estate, emphasizing the importance of cleaning up financials and operations to make the business attractive to buyers.
- Strategic Partnerships and Collaborations: He discusses how craft distillers and brewers may seek strategic partners or investors to grow their business, often more than seeking an outright sale.
- Real-World Examples: Jeff shares the story of a brewery in Defiance, Missouri, where the buyers purchased a bar-restaurant for its brewing equipment, showcasing the variety of motivations in alcohol business sales.
- Conclusion and Final Advice: Jeff stresses the importance of starting the sale preparation process early, understanding valuation, and consulting with a business broker to successfully navigate the sale process.
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