Listing ID: 66637
Business Overview
This business is a successful multiple decade old family-owned winery located in Western Washington on the I-5 corridor. The winery is a locally cherished and nationally recognized producer and distributor of competitively priced, regionally sourced, high quality niche wines including multiple port style dessert wines.
The continued success of the business and year over year revenue growth are attributable to authentic brand recognition, steadily increasing market share, and a highly diversified revenue stream. Retail sales and customer engagement are facilitated by a cozy tasting room known for being a gathering place for the locals. Internet sales have taken a jump during Covid and are anticipated to continue on.
Approximately 85% of the overall annual sales are generated by the company’s wholesale division. The business enjoys stable recurring revenue and long-time standing relationships with industry’s top, multi-location distributors including Safeway, Cost Plus and Whole Foods. The business does no marketing at all to grow and has great upside to expand wholesale sales. Local customer engagement could also be improved with a focus on social media and SEO.
The company has excellent equipment in place with more than 25 storage tanks ranging in size from 120-1500 gallons. They have six total chillers and a state-of-the-art bottling line that can handle 100 cases an hour. The winery production is a square footage of 6360 with rent at $4200 a month, and the tasting room is 960 square feet
at $1500 per month. The two owners work approximately 1.5 full time equivalents total completing all operational duties with a small amount of support for bottling. The tasting room has three part-time employees being paid $15 an hour.
The lead business broker at IBA for this company is Stephen Cohen. Mr. Cohen can be contacted directly at (425) 454-3052 or stephen@ibainc.com.
Financial
- Asking Price: $795,000
- Cash Flow: $260,000
- Gross Revenue: $850,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $230,000
- Inventory Included: Yes
- Established: N/A
The seller will provide an appropriate amount of transition training/consulting to smoothly transfer ownership of the business.
Additional Info
The transaction will include inventory valued at $230,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell companies. Nonetheless, the genuine reason vs the one they say to you might be 2 absolutely different things. For instance, they may state "I have too many various commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be excuses to try to conceal the reality of altering demographics, increased competitors, recent decrease in incomes, or a range of various other factors. This is why it is extremely vital that you not rely entirely on a seller's word, but rather, make use of the seller's response combined with your total due diligence. This will repaint a much more realistic image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses take out loans in order to cover things such as supplies, payroll, accounts payable, etc. Remember that occasionally this can indicate that earnings margins are too small. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new clients? Often times, companies have repeat consumers, which create the core of their daily earnings. Particular variables such as brand-new competitors growing up around the area, road building and construction, and employee turn over can impact repeat customers and negatively influence future incomes. One vital point to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business on a regular basis, the higher the chance to build a returning customer base. A last thought is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Just how might the neighborhood mean home income effect future earnings potential?
