How do I learn a taproom’s distribution accounts to local bars before taking over?
Ask for a list of each bar or restaurant account, what it orders, how often and how reliably it pays. Then confirm a few with the buyers directly. Accounts held through one personal relationship, or paying slowly, are weaker than steady ones with regular orders.
Ask the seller for a customer-by-customer schedule of the distribution accounts: what each takes, how often, and for how long the relationship has run. Compare it with the financial statements to make sure the totals add up. If sales to bars cannot be traced to invoices, ask why.
Look next at how those customers pay. Accounts receivable records show who pays on time and who lags. A bar that is always overdue may be a risk, not an asset. Ask whether any balances are disputed, and how the seller handles unpaid invoices. Your accountant can explain what to look for in the aging report.
Then think about relationships. Ask who calls on these bars, who delivers and who takes the orders. If the owner does it all, plan for a handover with introductions. Find out whether bars would switch if a competitor came by with a better offer, and whether the taproom has any written supply arrangements. Finally, ask about what the taproom owes. Money owed to hop, malt and packaging suppliers shows how the business runs day to day, and you should know what stays with the seller and what comes with the sale.
Key takeaways
- Get a bar-by-bar list of orders and tie it to invoices and the financial statements.
- Review how promptly each account pays, using the receivables records.
- Plan introductions, because the person who delivers often holds the relationship.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentAccounts receivable
- 02Business Development Bank of CanadaGovernmentWhat are accounts payable?
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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