Dealmaking activity in the beer space hasn’t slowed down despite growing concerns over the spread of the novel coronavirus in the U.S. Much to the contrary, in fact.
Arlington Capital Advisors principal Ryan Lake shared that his phone is ringing even more now with calls from companies looking to potentially sell, buyers seeking deals and a lot of brewery owners just wanting advice, as Arlington can provide counsel and act as a de facto CFO.
Some of those calls are coming from unlikely sources.
“There’s definitely some people considering their options right now that either didn’t plan on selling for a while or maybe never,” Lake said. “I think there are a lot of business owners and brewery owners who were already considering it and this is maybe accelerating those thoughts. It’s all over the board.
“Certainly, I don’t think anyone is contacting us from a position of feeling like it’s time to get a record multiple,” he added. “A lot of them are doing so [because] they want to protect their employees however they can.”
Lake gives insights into those conversations, stresses that good brands will always find a home and more during the above video interview with Brewbound editor Justin Kendall.
Look for additional video interviews in the coming days and weeks on how the beer industry is adjusting to this unprecedented challenge caused by the COVID-19 pandemic.