Listing ID: 76399
This beautiful, “Old World” European style, craft winery currently makes around 150,000 bottles per year, with maximum capacity of around 250,000 bottles per year. You will feel like you’ve been transported to Europe in the Tasting Room/Wine Bar. They use a very unique wine making process that’s very rare in the United States with more than 30 styles to choose from. This sale includes over $500,000 worth of extremely rare, handmade wine making equipment direct from Old World Europe, and over $1,500,000 worth of inventory (both bottled and in production). If you’ve ever dreamed of owning your own winery, this business is a must see!
- Asking Price: $1,000,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $2,000,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell companies. However, the genuine reason and the one they tell you might be 2 entirely different things. As an example, they might say "I have way too many other commitments" or "I am retiring". For many sellers, these factors stand. But, for some, these may simply be justifications to attempt to conceal the reality of changing demographics, increased competitors, current reduction in earnings, or a range of other reasons. This is why it is very essential that you not rely totally on a seller's word, however rather, make use of the seller's answer together with your total due diligence. This will paint a much more realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans so as to cover items such as supplies, payroll, accounts payable, and so on. Remember that sometimes this can mean that revenue margins are too tight. Numerous companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to 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 contracts with suppliers that should be met or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in new customers? Often times, businesses have repeat customers, which form the core of their daily revenues. Specific factors such as brand-new competitors sprouting up around the location, road building, and also staff turn over can affect repeat customers and also negatively impact future profits. One important thing to think about is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business on a regular basis, the better the chance to develop a returning client base. A last idea is the general area demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Exactly how might the neighborhood median family earnings impact future earnings potential?