Seller Financing Available
CO Winery & Vineyard, $975K Rev 400K CF, 1.65M Assets
CO Winery/Vineyard, $975K Rev, 400K adj EBITDA, 1.65M Hard Assets
Mesa County, CO
Beautiful Location, Very Profitable, and can be expanded easily. A well-established, state of the art winery that is one of the oldest and largest wineries in Colorado, with a totally unique first class tasting/retail sales room and all around spectacular views. There are 3 acres of long producing vineyards on the 6.2 acre property including the 7000+ sf production facility/warehouse which is fitted with a 20,000 watt photovoltaic system. This is a completely turnkey operation with top of the line equipment including stainless steel tanks, a fully automated bottling line, multitudes of premium oak barrels and all the other equipment necessary to continue current operations. Included in this sale are two brands, a substantial inventory of bottled and bulk wines and additional unplanted acreage suitable for a residential building or future expansion. The hundreds of wine competition awards won by this winery have created a demand for its products which exceeds the current supply - however, increased production is possible with the current equipment.
This listing is a truly unique opportunity which offers the buyer a rewarding and glamorous new lifestyle which is also highly profitable.
They have dozens of wines and wine based food products that have won many awards. The formulas and wine making techniques are part of the sale.
The business cash flowed $314K in 2013 on revenues of just under $900K. They have consistently earned over $350,000 because they are a family run business and have found a comfortable size. The CO flood in Sept of 2013 kept their numbers down in 2013 only because it restricted their distribution accessibility. The deposits for 2014 through July are 8% higher than the same time last year. The business can be easily grown much larger than its current size through a combination of ways. 2014 is estimated as of mid Oct to be over $975K in Rev and above $400K in adj EBITDA.
They have an estimated $2.6MM in current value Assets: $1.6MM in inventory, equipment, etc. and $1MM in vineyard and the buildings. This will be an Asset Sale for $2.1MM and the Vineyard(Land) is for sale separately for appraised value which is estimated to be around $1MM.
Important Considerations: You could not start this operation from scratch for less than their sales price. Plus, all of the best land in the best area for growing grapes has already been developed and their area is expected to continue to increasingly grow in popularity. They also have additional space on their land that could have more vines planted or they could buy more grapes to easily grow the size of their operation. You can use a distributor or rent warehouse space in their main market and hire an outside sales person to increase volume and profits.
Location: Colorado, USA
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Brief Overview and Selling Points:
Growth: The buyer of this company can increase sales and profitability by increasing the number of vines on their property, buying more grapes/raw juice, doing more marketing, upgrading their distribution etc. They have kept it a comfortable sized operation on purpose. On the video interview with one of the owners, he states that this business could easily double or triple. The new owner can achieve that increase with either doing self-distribution by hiring salespeople or by hiring outside salespeople that would work out of a warehouse in the areas that they sell most of their wine or hire a distribution company like most of the other wineries.
Marketing: The owners have developed relationships over time and have never done much advertising. They have a website that incorporates sales but have never tried search engine optimization or any social media. The website looks and acts old and dated and they realize that it needs work. They do attend some of the wine festivals but only a fraction of the ones that they should attend. They do benefit from their States Dept. of Agriculture which has a $500K annual budget that is spend 1/3rd on promoting their States wines/wineries, 1/3rd of Research, and 1/3 at their discretion. The Dept. has a full time person dedicated to promoting the industry in their State who also listens to an advisory board made up of local Vineyard and Winery owners. It is a great deal for a Company like this since their area has benefited from being promoted.
The new owner will step into recurring cash flow from solid relationships with individuals and businesses that they have been selling their wines to for years. There are no concentration issues for them.
The sellers are fully committed to sell the ‘Assets’ of the business and will help as needed for at least one full year post closing for reasonable salaries. They believe they are the best Winery in their region and have the awards and history to back that up. They are proud of what they have built and want to see it grow and succeed in the future.
Jeff Chapman Eisnaugle
Company Broker Group, LLC.
Mergers, Acquisitions, and Exit Planning Professionals
999 18th St Ste 3000
Denver, CO 80216