A structured framework covering licensing, distributor relationships, equipment condition, and revenue quality before you close on a craft beverage acquisition.
Find Brewery & Craft Beverage Acquisition TargetsAcquiring a craft brewery involves far more complexity than a typical small business deal. Buyers must evaluate TTB and state licensing transferability, distributor agreement terms, equipment replacement risk, and a revenue mix spanning taproom, wholesale, and events — all before committing capital at 2.5x–4.5x EBITDA multiples common in this fragmented, $28B market.
Verify that all federal and state permits are clean, current, and transferable to new ownership without regulatory delay or deal-blocking violations.
Confirm the federal TTB Brewer's Notice is active, violation-free, and understand the new-ownership notification process required before closing.
Review each state license for change-of-control provisions, transfer timelines, and any pending regulatory actions that could delay or block the acquisition.
Audit all distribution contracts for consent requirements, termination rights triggered by ownership change, and exclusivity terms affecting post-close revenue.
Assess true normalized EBITDA by channel, validate COGS structure, and identify personal expenses or non-recurring items distorting reported profitability.
Separate taproom, wholesale distribution, events, and merchandise revenue over 3 years to assess mix stability and identify over-dependence on any single channel.
Analyze raw material costs for hops, malt, cans, and CO2 alongside packaging and labor to validate gross margins by SKU and distribution channel.
Identify commingled personal expenses, above-market owner compensation, and non-recurring costs to calculate a defensible adjusted EBITDA for deal valuation.
Evaluate physical asset condition, operational documentation, and the degree to which the business can run independently of the founding brewer post-close.
Commission a professional appraisal of fermenters, canning lines, cold storage, and glycol systems to quantify deferred maintenance and near-term capex exposure.
Verify that all core recipes and brewing processes are documented in transferable SOPs, reducing key-person risk tied to the founding brewer's institutional knowledge.
Identify whether a head brewer, taproom manager, or operations lead exists who can run daily operations, and assess retention risk for those individuals post-acquisition.
Verify the Brewery & Craft Beverage acquisition qualifies for SBA financing, the purchase price is supportable by the verified cash flow, and the deal structure protects the buyer's downside.
Confirm the Brewery & Craft Beverage meets SBA 7(a) eligibility requirements: the business is for-profit, U.S.-based, within SBA size standards, and the buyer meets personal financial requirements. Some industries have specific SBA restrictions — verify before LOI.
Model verified normalized EBITDA against projected SBA loan payments at current rates. A $1M SBA 7(a) loan at 10.5% over 10 years costs approximately $13,000/month. The Brewery & Craft Beverage must generate at least 1.25x debt service coverage after a market-rate manager salary to pass underwriting.
Confirm the seller note is properly subordinated to the SBA loan and goes on 24-month standby as required by SBA rules. If an earnout is included, define exact measurement metrics, time period, and dispute resolution process before signing the purchase agreement.
Before signing a Letter of Intent, request these documents from the seller. Missing or incomplete items are a red flag — not a reason to proceed without them.
Most state brewery and taproom licenses require a formal transfer application or new-owner application. Timelines vary from 30 to 180 days depending on jurisdiction, making early regulatory engagement critical to avoid post-close operational gaps.
Lower middle market craft breweries typically trade at 2.5x–4.5x adjusted EBITDA. Taproom-heavy operations with stable traffic command higher multiples; wholesale-dependent businesses with declining accounts or aging equipment trade toward the lower end.
Review each distribution agreement for change-of-control provisions and request introductions to key distributor reps during diligence. Relationship strength and contract transferability are both factors; earnouts tied to wholesale retention can protect buyers post-close.
Yes. Craft breweries are SBA 7(a) eligible, with lenders typically financing 80–90% of the purchase price. Buyers should expect a 10% equity injection, strong personal credit, and 3 years of clean business financials to qualify for approval.
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