To Brew or Not to Brew: The Corkford Brewery Acquisition

In 2017, the president and co-owner of MacKinnon Industries was considering the opportunity to diversify his business and bring a former family business back into the MacKinnon family. With an extensive background in acquiring and managing manufacturing businesses, he now had an opportunity to purchase Corkford Brewery Inc. (Corkford Brewery). The deal included the land, building, and equipment, as well as four successful brands from Tanzer Brewing Company, which owned Corkford Brewery. MacKinnon wanted to evaluate the financial viability of the business venture under three different potential operating scenarios, assess the potential of adding ciders to the product mix, and consider the price that he would be willing to pay to acquire the business.