Let’s talk about mergers.
We’re reading about them every day—mergers happening left and right. And let me tell you, I, Chris Farmand, am ecstatic. I’m genuinely happy for the breweries coming together because they’ve found a solution. They’re not sitting back, wondering what the next year will bring.
They’ve found a way to stay in the game. A solution to what, you ask?
Capacity. Sales. Operational efficiencies. Purchasing. And the big one: overhead.
Mental note: Chris Farmand is going to be talking a lot about overhead in the coming years.
The breweries that are merging are finding like-minded business partners to share the burden of running a business. Imagine how good that feels—finding someone aligned with your vision, ready to join forces and move forward together.
Now, you might be asking yourself: Why would I merge? What are the signals that it might be time? Here are a few:
- Your lease is ending. Occupancy is a bear these days. If your lease is up, it’s crucial to analyze how you’re using that space. Are you paying retail square footage to manufacture a product? Or manufacturing square footage for a retail operation? Those mismatches can sink a business.
- Your brewing equipment is failing. You’re facing a major capital expenditure to upgrade, and now just might not be the time.
- You’re running out of cash.
- You’re burnt out.
If any of these apply to you, you’re not alone. A merger might be the financial reset you need.
At Small Batch Standard, we’ve embraced this M&A space. Honestly, I ran into it full speed because I’m having a blast working with brewery owners to structure deals and get them across the finish line. Here are three real-world examples of how we’re helping:
- Buying a distressed brewery. One of our clients is purchasing a struggling operation. It’s not technically a merger, but it falls under the M&A umbrella. We’re helping with negotiations, valuation, and figuring out what parts of the business to keep or let go.
- Acquiring two beverage brands. Another client is bringing two new brands under their roof. We’re assisting with valuations and the logistics of the acquisition.
- Sell-side advocacy. A client has identified a buyer, and we’re supporting them through the process—valuations, negotiations, and highlighting the value of their brewery.
This work is challenging, rewarding, and—honestly—super complicated. It’s right up my alley.
If you’re thinking, Chris, this all sounds great, but I don’t know where to start, just hit reply and let’s chat. Or, if you’re already deep into the process and need a hand, reach out—I’d love to hear how it’s going.
Wherever you are on your journey, let’s have a conversation.
Hope to hear from you soon!
-cf