Susan V. White, Pascal Villager
North American Case Research Association (NACRA) (NA0003-PDF-ENG)
January 15, 2008
The owners of Aquarius Ales, a popular pub on Sixth Street in Austin, Texas, received an offer to sell their business to two University of Texas graduates for $ 450,000. Was it a fair offer? If not, what would be an appropriate counter offer? The case looks at the revenue outlook for the pub amid declining alcohol consumption among the population. The Aquarius Ales niche was attractive to those who liked the music of the sixties and seventies, and the name comes from a song from the hit musical “Hair” from the sixties. Although the main product of the pub was alcoholic beverages, the pub had the advantage of a desirable location, fewer competitors, and a population of college students who liked the “old men.”
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