Very few people, if any, get excited when they hear the word AUDIT. In this article, we will focus on financial audits as they play a critical role when both selling a business and/or buying one.
Craft breweries are unique businesses. Many started small, grew quickly, and were built by brewers—not accountants. As a result, when an audit enters the picture, it can feel like a threat rather than a safeguard. However, discomfort doesn’t always equal danger.
The Role of Financial Audits in Brewery Acquisitions
In a brewery acquisition, buyers aren’t just purchasing tanks and taprooms—they’re buying cash flow, brand strength, and future earnings potential.
Audits help answer critical questions:
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Is taproom and distribution revenue sustainable?
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Are margins accurate once owner adjustments are normalized?
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Are inventory levels and production costs properly stated?
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Are there hidden liabilities tied to leases, equipment, or taxes?
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Can the brewery support debt service post-close?
For lenders, private equity groups, and strategic buyers, verified financials are almost always non-negotiable.
No clean numbers means no financing and oftentimes no deal.
How Audits Protect Buyers and Sellers
For Brewery Buyers
Audits reduce risk and increase confidence by:
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Validating true EBITDA
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Identifying one-time vs. recurring expenses
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Ensuring accuracy of financials
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Supporting financing approvals
Buyers who trust the numbers move faster—and make stronger offers.
For Brewery Sellers
While audits may feel intimidating, they often protect valuation:
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Clean financials support higher multiples
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Issues are addressed before buyers find them
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Fewer retrades late in the process
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Faster closings with less friction
Well-prepared sellers maintain leverage.
The Biggest Mistake: Avoiding Financial Scrutiny
Brewery deals most often fail when financial diligence is delayed or avoided. Common outcomes include:
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Last-minute valuation reductions
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Escrow holdbacks or earnouts added unexpectedly
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Deals collapsing during lender review
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Loss of credibility with serious buyers
In M&A, surprises are expensive—and preventable.
Turning a “Necessary Evil” into a Strategic Advantage
At American Craft Brewery Advisors, we help brewery owners prepare for diligence before going to market and help buyers understand what truly drives earnings.
When brewery financials are clean, defensible, and well-presented:
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Deals move faster
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Negotiations are smoother
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Valuations are more credible
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Trust is established early
Audits don’t kill brewery deals—poor financial transparency does.
Call to Action
🍺 For Brewery Owners Considering a Sale
Thinking about selling in the next 1–3 years? The best time to address audit readiness is before you go to market.
👉 Let American Craft Brewery Advisors help you prepare your financials, protect your valuation, and position your brewery for a successful exit.
🍺 For Brewery Buyers & Investors
Looking to acquire a brewery with confidence? Clean, well-vetted financials are essential to avoiding post-close surprises.
👉 Work with American Craft Brewery Advisors to evaluate opportunities, validate earnings, and structure smarter deals.
Reach out to start the conversation—before diligence becomes a problem.