469 - How to Value A Whiskey Company and Sell It with Kris Bohm of Distillery Now Consulting

Bourbon Pursuit

Hobbies, Food, Arts, Leisure

4.9 • 866 Ratings

🗓️ 4 July 2024

⏱️ 56 minutes

🔗️ Recording | iTunes | RSS

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Summary

Every year there is a distillery that catches the headlines because they have sold for hundred of millions of dollars. Sounds like a dream for many but to make that dream become a reality, you'll have to know how to value your distillery. For that reason I've invited Kris Bohm on the show. He's the founder of Distillery Now Consulting where he helps folks buy, sell, and install distillery equipment, but he's also found himself in the midst of multiple merger and acquisition conversations. He joins the show to talk about how to value a distillery in the case someone like Diageo or a private equity firm comes knocking. We talk about case sale volumes, the value of aging whiskey in barrels, equipment, brand recognition, and where the trajectory growth curve comes into play. Show Notes: Above the Char with Fred Minnick (@fredminnick) talks about the rise of AI and being a writer. What made you want to get into distilling as a teenager? What's the difference in distilling alcohol vs ethanol? Why would a client choose pot vs column? How do you gauge consumer demand and look at sales for calculating value? What does the pool of buyers look like? What is the threshold of a case volume to start the discussion? What's the value in the brand vs the equipment and production? Beyond physical assets, what other factors play into a valuation? How are barrels valued? What's the process for selling a business? Any value in having current distribution? What are roadblocks that often kill deals? Does it matter if case volume happens in the market or at the tasting room? If you can't afford Vendome, where do your point people? Support this podcast on Patreon

Transcript

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0:00.0	as a consultant with startups getting going, the thing I tell everybody when they're starting
0:04.1	and getting into this world of, you know, whiskey and just beverage alcohol is that when you start
0:08.5	a distillery, you're not starting a distillery to make distilled spirits. You're starting a
0:12.5	marketing company that sells distilled spirits. This is Bourbon Pursuit, the official podcast of Bourbon, bringing to you the best in news, reviews, and interviews with people making the bourbon whiskey industry happen.
0:37.0	And I'm one of your hosts, Kenny Coleman.
0:38.9	Every year there's a distillery that catches headlines because they sold for hundreds of
0:43.0	millions of dollars. And it sounds like a dream for many, but to make that dream become a reality,
0:48.0	you'll first have to know how to value your distillery. And for that reason, I've invited Chris
0:52.7	Boehm on the show, and he's the founder of
0:54.6	Distillery Now Consulting, where he helps folks buy, sell, and install distillery
0:59.0	equipment, but he's also found himself in the midst of multiple merger and acquisition
1:03.6	conversations. He joins the show to talk about how to value a distillery in the case someone
1:08.8	like Diageo or a private equity firm comes knocking.
1:12.2	We talk about the case sales volumes, the value of aging whiskey and barrels, equipment, brand
1:17.7	recognition, distribution, and where the trajectory growth curve comes into play.
1:23.0	Would that enjoy this week's episode and now here's Fred Minnick with Above the Char.
1:27.4	I'm Fred Minnick and this is
1:30.0	Above the Char. This week's idea comes from Matt on Twitter. His handle is at Demat 05. That's
1:40.7	with two T's. Now his isn't actually a question, but it ends up being a thread that I found very, very
1:48.3	interesting, and I replied to.
1:50.7	A very popular website ended up referring to a rye as a bourbon and basically just had all
1:57.4	kinds of errors in the description of this product. And it happened to be a James E.
	...

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