In the dynamic world of distilleries, mergers and acquisitions (M&A) present a unique opportunity for organizations to unlock new growth potential. The stakes are high, however. Without a well-planned IT strategy, you risk encountering roadblocks that could jeopardize the deal. Aligning your distillery IT strategy with the potential buyer's expectations might feel overwhelming. But don't worry! Your IT strategy can be a powerful asset to help you navigate the M&A process successfully and ensure smooth integration.
Incorporating distillery management software into your IT strategy drives innovation and fuels growth in the ever-evolving distillery business landscape. During a merger or acquisition, negotiators have a unique window of opportunity that allows them to strategically invest in and implement distillery management software to give the company a competitive edge. M&A opportunities provide the perfect time for an organization to “get it together” to make its business more attractive to buyers.
In the competitive landscape of the craft spirits industry, Samson & Surrey, a premium craft spirits producer, embarked on a mission to unite its diverse portfolio of brands under one distillery management platform. With six unique labels, including Widow Jane Distilleries, Philadelphia Distilling, Tequila Ocho, FEW Spirits, Mezcal Vago, and Brenne Whisky, the company faced the challenge of managing multiple QuickBooks files, barrel management programs and distilling systems.
With six distinct brands, each with its own set of financials and inventory tracking systems, the company struggled to generate consolidated reports and needed a cohesive way to track aging and finished products. The absence of cost visibility and inefficient processes made it difficult for the company to scale and position itself favorably for an acquisition.
Samson & Surrey had some work to do on their distillery IT strategy. Working with Doozy Solutions, the company implemented Crafted ERP for distilleries and brought their financials together to save time, generate accurate reports and prepare for an acquisition. John Valdes, vice president for planning and operations at Samson & Surrey, said, “Without Crafted, we would not be in the place we are today from a sales growth perspective because we would not have been able to manage all the various brands.”
It all starts with due diligence and aligning the IT strategy with business objectives.
Before engaging in M&A discussions, conducting a comprehensive IT audit and rigorous acquisition due diligence is critical. In the case of Samson & Surrey, this included pulling historical financial information for each brand, coordinating detailed inventory counts, among many other assets, and gathering accurate, consolidated financial and inventory statements that sometimes date back years.
Fundamentally, your audit should include the following:
When IT aligns with overall business objectives, it enhances the company’s strategic positioning. Modernizing operations and software improves scalability, flexibility and accountability.
Here's how to effectively align IT with business objectives:
Onboarding comprehensive distillery management software allowed Samson & Surrey brands to get a holistic view of their businesses in one platform.
“Crafted is certainly helping Samson & Surrey and, in particular, Widow Jane meet our objectives,” said Lisa Wicker, former master distiller and president of Widow Jane. “It keeps us on task. It keeps us accountable. Everything from inventory to barrel movement to production to distillation to rebarreling – it’s all there, it’s all there together, it’s all one-stop shopping.”
By getting your books in order, aligning IT with business objectives and effectively managing change and integration, you can reduce anxiety and increase the chances of a successful acquisition. “Crafted specifically allowed us to get IPO and/or acquisition-ready in the sense that it allowed us to get all of our information into one complete solution, and that solution was intentional,” said Valdes. “Anyone who came in to acquire us or an IPO could come in and realize that we have the right controls in place to be a successful organization.”
Here are five practical steps to transform your IT strategy into an asset:
Embrace the opportunity to transform your distillery IT strategy and unlock new opportunities for growth and success. Recognizing and proactively addressing potential challenges can minimize anxiety and make your business attractive to potential acquirers. It’s a chance to optimize your IT infrastructure, fortify data governance, strengthen cybersecurity measures and align IT with business objectives. With careful planning and execution, you can ensure a smooth and fruitful transition, positioning your business for growth and success in the competitive landscape.
Partnering with experienced enterprise software like Crafted ERP can help you meet your acquisition goal. Our team offers a wealth of craft beverage industry experience, integrating your business into one unified system and customizing a necessary to fit your specific requirements.
Start transforming your IT strategy today and unlock the full potential of your distillery. To speak with a Crafted ERP expert,
fill out our contact form today.
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