Should I sell my brewery as a going concern or sell the equipment?

One is to find a buyer who will keep making the beer. The other is to list the tanks, kegs and packaging line and close the doors. They lead to different outcomes for you, your staff and the people who buy your beer, so it helps to look at both before choosing.

What a going-concern sale carries

A buyer of the running business takes the brand, recipes, supplier and retail accounts, staff and the equipment as one working unit. That is why a going-concern buyer may care about your records, your handover and the way customers see the beer. Ask your lawyer how the sale should be structured and what happens to contracts and licences.

What is lost when the kit sells alone

Equipment buyers are interested in the machines, not the beer. The recipes, the name, the customer relationships and the trained team may stop with your operation. You may also have leases, supplier balances and staff matters to settle on the way out. Your accountant can explain how each type of sale is treated for tax, so ask before you pick a path.

How equipment is assessed

Equipment can be assessed by age, condition, maker and how easily it can be moved or resold. Business Development Bank of Canada guidance on equipment valuation explains how it can be done. Consider asking an independent appraiser, and ask how the two routes differ.

• Which assets are leased or carry a lender’s claim?
• Would a buyer want the recipes and brand name?
• Which staff and customers depend on the business staying open?
• How long can you carry costs while you sell?