Business Overview

This established winery is located in a busy tourist destination in Iowa that sees people from all over the country passing through the area enjoying the many attractions, and establishments that cater to them. The winery has produced award-winning wines for 15 years from the grapes grown in their own nearby vineyard as well as from other growers in the area. 55% of their business is retail sales at the winery or through shipping direct to customers in 38 states. 45% of their business is wholesale which is self distributed through their own delivery drivers to over 150 retail locations in Iowa and Wisconsin. The business is known for their quality wines, friendly service and fun atmosphere.

Financial

  • Asking Price: $2,100,000
  • Cash Flow: $413,870
  • Gross Revenue: $914,080
  • EBITDA: N/A
  • FF&E: $58,168
  • Inventory: $141,772
  • Inventory Included: Yes
  • Established: 2000

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:15,000
  • Lot Size:N/A
  • Total Number of Employees:19
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The winery is a little over 15,000 sq. which includes winery production area, retail space, tasting room, bar area, an event room, an office, and the outdoor wine garden.

Is Support & Training Included:

As required by buyer.

Purpose For Selling:

Retirement

Opportunities and Growth:

While the winery is already growing, a new owner could choose to expand even further by increasing wine distribution either through adding more delivery drivers or by using an existing distribution company. Production of wine could also be increased if more space was added to the facility for a bottling room. Other growth opportunities for the business include expanding hours of operation and renting out their space for outside events.

Additional Info

The business was established in 2000, making the business 22 years old.
The sale will include inventory valued at $141,772, which is included in the asking price.

The business has 19 employees and is located in a building with disclosed square footage of 15,000 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people decide to sell companies. Nevertheless, the genuine reason vs the one they say to you might be 2 entirely different things. For instance, they might claim "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these might simply be excuses to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in earnings, or an array of various other factors. This is why it is very essential that you not count entirely on a vendor's word, however rather, make use of the vendor's response together with your general due diligence. This will repaint a more sensible picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous companies take out loans with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that revenue margins are too tight. Numerous businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that should be satisfied or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location draw in new clients? Most times, companies have repeat consumers, which create the core of their daily revenues. Specific elements such as brand-new competition sprouting up around the area, road building, and employee turn over can affect repeat clients and also adversely influence future earnings. One crucial point to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business often, the higher the opportunity to construct a returning customer base. A last thought is the general location demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Exactly how might the neighborhood average family earnings effect future income prospects?