This article addresses issues surrounding distribution relationships, which are relevant to alcohol producers or importers that are preparing for sale. If you are a producer or an importer, it is critical to prepare comprehensive information relating to your Distribution Network. You should have a chart of your network, setting out which distributors you work with, in which territories. If you have multiple brands, this chart should designate whether all your brands are assigned to a single distributor in each territory, or if you work with multiple distributors. This chart should note whether you have any Written Agreements with your distributors.

There are many reasons why you may be considering selling your alcohol business or brand. Sale could have been your desired outcome from day one, or it could be due to unforeseen circumstances or market conditions. Whatever your reason for selling, ensure your alcohol business is ready for sale before soliciting potential buyers. As alcohol is a highly regulated industry, sales of alcohol businesses require more due diligence for the buyer to evaluate your business as an acquisition target. Acknowledge this complexity and make your business more attractive to interested purchasers by cleaning up compliance shortcomings in advance of the sale and collecting organized regulatory information for the potential buyer’s due diligence team. This series of articles will address what your alcohol business should do to best position itself for acquisition.