How to value a brewing company

Whether you want to buy or sell a brewery you must solve the complex puzzle of how much it is really worth.

A fact as simple as setting a price means a complex process for both parties . That is why we must be very cautious and make a small assessment. Whether you are buying or selling, the process should be very similar although the initial price will be determined based on your valuation and it is very likely that your counterpart will do their own study and in the end they will have to reach an agreement.

I just want to pause briefly to comment that although you should see for your own interest and it is totally valid , it does not mean that your assessment is correct and thinking that they will pay you what you ask for is a complete mistake.

I'll tell you a brief story a while ago I had a radio control car store with a gasoline engine, a person who worked with me bought me a couple of cars since he himself was a hobby enthusiast, a few years later he decided to work somewhere else so who retired. Some time later a friend and customer of the store found him in the shop selling the two cars that he had bought and used for me. So my friend came over, said hello and asked how much he was asking for the cars.

The seller who had collaborated with me at the time gave it a much higher price than what they were worth in my store, to which my friend told him that it was a high price than what the former collaborator said was the money he needed. .

My friend told him that he planned to pay for the cars, not for his feelings or needs . If he really wanted to sell them, he should set a price appropriate to the condition of the cars, something that would be fairer.

When buying or selling a brewery, the value becomes complicated since we do not have a direct reference as in the case of carts. This is why the method and way of valuing both parties is completely valid since each person will put the initial purchase or sale price under their own arguments of value, opportunity and risk.

Who will really be victorious has more to do with negotiation skills, so you must master your arguments to convince and persuade your counterpart.

Whether you are evaluating a beer company to buy or sell, prepare for a good debate , a great game of give and take. I wish you much success in your valuation, in later articles we will talk more about the different valuation methods (when they are relevant and when you should be careful not to use them)

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