(FORTUNE Small Business) – Lizardhead Brewing Co. CORTEZ, COLO.

OWNERS Rudolf and Susie Baeumel FOUNDED 2000 PRICE TAG $450,000

WHAT YOU GET The purchase price buys you most of the equipment you'll need to make it big as a microbrewer. You get a 20-barrel brewing business complete with lagering equipment, bottling and labeling equipment, a boiler, fermenters, conditioning tanks, a bottling line, storage facilities, and a forklift. The brewery sits on a relatively small portion of a three-acre plot, so there is plenty of room to expand when you're ready to dethrone Budweiser.

THE COMPANY Longtime restaurateurs Rudolf and Susie Baeumel started their brewery next door to their restaurant as a nod to Rudy's German heritage. To get things flowing, they tapped a Bavarian brewmaster, then began selling their Mesa Cerveza at their restaurant and other local restaurants and liquor stores. Business got a boost when the Baeumels' daughter, Erika, graduated from college with a business degree and a desire to help build up the brewery. She hit the road, pushing the family's brews at festivals and resort areas around the state. The road show worked, and in 2000 the family expanded to the current facility, just two miles from the Baeumels' restaurant. Unfortunately, Erika recently moved to Hawaii, and her parents have decided to focus on their restaurant rather than the brewery.

THE NUMBERS To break even on their investment, the Baeumels are pricing the business at a "negotiable" $450,000. The breakdown: $300,000 for the business and equipment, plus $150,000 for the building and the three acres it occupies. In the past two years the brewery has produced 600 barrels (300 annually) and earned a profit of about $54,000. According to Frank Marino, a real estate broker based in Santa Barbara who specializes in restaurant and brewery sales, some brokers multiply a brewery's profitability by three to get a general estimate of the business' value. But he says a more reliable appraisal is done by considering the terms of the sale (contact a broker through a restaurant association to determine how the property's sale price compares with market values in the area), the value of the equipment, and the company's profitability and goodwill (it's easy to hedge in a business that deals at least partly in cash).

UPSIDE The brewery's location in the "four corners" region of Colorado means that tourists--and restaurants--abound in the area. Lizardhead is just over an hour from the all-season, multisport resorts at Telluride. It's also near several national parks, including Mesa Verde, and the Canyons of the Ancients National Monument. The Baeumels already have contracts with restaurants and bars in the area, so the buyer should have a business base to build on. Another plus: You can self-distribute beer in the state of Colorado, so you're not limited by sometimes complex deals with distributors.

DOWNSIDE Handling brewing operations and traveling around the state to push your brews will mean that you'll need a clone--or a few hard workers. To widen your distribution even farther, you'll have to hit the beer-festival circuit and resort areas. Also, the Baeumels' liquor license won't work for you. You'll have to apply for a transfer of ownership, and in Colorado the application process can take up to 180 days.

--Jennifer Keeney

FSB does not make any representations regarding the accuracy of information provided by the seller. Interested readers should conduct their own investigation of the business and contact Rudolf Baeumel at 970-564-9112.