Poll: Would you sell out?

I would, but as part of the deal, I would insist on maintaining creative control. I would also specify in the contract that the buyer maintain certain quality standards, and do nothing to cheapen the name or image.

 

Yes, yes I would.

 

Of course they have the right to sell, but I don't think that is the point of the thread.

 

Take the money and go build a new project. It would be flattering for a small business owner to be courted by a larger business for acquisition of their life's work. Everyone is different. Some are so strongly independent that they would hold on to let succeeding generations run the business into the ground, losing all value. Others (Wicked Weed maybe) build things very nicely expressly to hopefully sell, turning hard work and good product into big profit. It is not a moral issue. There are some places that I love the second I walk into their business. You can tell it's well run, from the top down. These are the places that I like to see endure. But, I'll never begrudge a person for not turning down a very good offer. The poll didn't offer me enough choices.

 

I have no knowledge of who my fellow commentators are on this thread. Everyone is welcome to their own opinion. I personally am working in a software start up and we have a deliberate strategy to grow to the right point and then find our buyer. You get a much different perspective on things and the sometimes difficult choices one makes. It's not as simple as "selling out"... Buyouts are hard work!

 

I might question that if I sold to someone to get "my" beers across the country, they are no longer my beers. Of course, that might depend on whether or not I am also the brewer of the company I own or not (at the time of sale).

Tie my thoughts in on that, and I basically agree with @GetMeAnIPA - if I was enjoying my work/life balance doing what I was doing, I wouldn't sell. I mean, if I was a pro golfer, and someone said they'd give me $x to stop being one, I'd probably say no to that as well.

But, a different circumstance - I end up spending too much time on the business, not enough time with the beer or customers or family, let's say. Then yes, I'd probably sell. But at that point, I would also care less if people stopped buying the beer, as I'd be out of it.

I guess that sort of answers how much would it take? Enough for me to walk away - which also could be different in each situation.

 

Let's say you start a brewery at age 30, you struggle for a few years before it is making enough money that your spouse no longer has to support your family. Then by age 40 you've earned a number of awards, your spouse has retired, and you now have nationwide distribution. You were the brewer that got the brewery to this point. You are pulling in a tidy profit of $30m/year, the company is valued at $500m, and Supermegaconglomeratebeer offers you $600m. You know you could easily start a new brewery with some recipes you have in mind, and you're free to build it wherever you want. Your #1 responsibility is arguably to support your family, and #2 is to provide for your retirement.

At the age of 40, it would be quite tempting to walk away with $600m, be set for life, send your kids to any school, and start another brewery leveraging what you learned from the first brewery. Or even pocket that money, and stay on as manager/brewer/whatever. I can see a number of such scenarios.

If, on the other hand you have enough money already, maybe you can afford to keep it a few years with a bit of risk that unforeseen circumstances might lead to failure, before you can sell. Eventually you sell it, will it to someone, or it goes under.

I'd sell.

 

Maybe I'd feel guilty. Tough to say unless I were in the situation. But If I started a brewery and worked hard on it and did well enough so that I was offered millions I think I'd be proud. Nobody is forcing anyone to buy BMC beer.

 

Haha - I get your point, but chuckled at this thought: if you haven't provided for your family and retirement on $30m a year, you either aren't doing something right or you have much more expensive lifestyle than me.



Edit: assuming your m is for million. If thousand, then I retract my statement.

 

Completely agree. If I'm making money, according to my family's needs, and if I love running a brewery, I don't think I would sell. But, like you wrote, if my brewery's heavily in debt and a corporate brewery wanted to buy me out, yes I'd sell.

 

Guess I should have had a beer before framing that scenario, but I did mean million. I do have expensive tastes, but not that expensive. Yes, I suppose you could provide for your family on $30m, if you don't spend too much on craft!

 

I didn't vote in the poll since it's nearly an impossible question given all of the variables. But I wonder how many breweries actually regret "selling out?"

Goose Island was purchased for $38 million in 2011.

Ballast Point was purchased for $1 billion in 2015.

I'm sure Goose Island isn't upset over the large amount of money they received. But they have to be kicking themselves just a little bit for selling when they did.

 

Well yes I would , I'm in business to make money. I'd take that In Bev money and security in a heartbeat, and I'd continue to brew and experiment making beers on someone' else's dime. If I get bored I start another brewery. I'm assuming WW is the subject after a quick scan, I didn't read every post. I don't blame anyone for securing their family's future.

 

If building a successful operation where these same corporate entities are approaching me for a buy out then I have been or in the process of reaching my goals as a brewery, business person.

Having a formal education for small business and small business management it has always been a dream to own my own business.
If they are offering large sums of money for my operation then why sell out?

It really isn't easy money, although it could be life changing, all they are doing is giving you a lump some payment for what you created.
Then they expect you to stay on staff and be there personal care taker over which you created but now you have little control.

Doesn't this reaffirm your hard work? The quality of your business acumen? If you are creating and operating a successful business in most cases its because you didn't want to work for someone else and make someone else rich through your toil.

For me personally I wouldn't sell out as what I have created is more then just a superficial object but blood sweat and tears and part of myself, family and friends.

While I don't begrudge them for selling out that is a choice they have to make....But at the same time I don't have to help said brewery and corporate owner destroy the market which they were once a part of. These breweries are pawns in a much larger game which corporations like ABI have a much bigger stake if they lose to the tune of billions. Each takeover is a hit to the independent craft market and a protection for the corporate core brands.

So I answered no.

 

Its The American Way

 

Yup. Craft is peaking now.

 

So...sell?

 

yep.

 

My personal opinion is that no matter how strongly one believes that big beer is the devil, if one has the ability to make millions and continue to do what they love(brew beer), then why the heck not.

 

What a great response. I've yet to see anyone point out the nuance in quite that way. This may be why some brewers quit when there's a buyout (e.g., Ballast Point); it's no longer their beer and they're not able to enjoy their job in the same way.