Seller Financing Available
CO Winery & Vineyard, $975K Rev 400K CF, 1.65M Assets
Co Winery and Vineyard, $975K Rev, $400K Adj EBITDA, $1.65M Asset
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.
The confidentiality agreement (NDA) is in the following link: http://www.listingsummary.com/winery/Non%20Disclosure%20Winery.pdf which will allow me to send you the full sales package with the name and location of the business along with a detailed data room with financials and a Comprehensive Video on the entire operation and a Full Interview with the Owner. If you have any questions or comments on the CA, please email me at email@example.com. Thank you.
WINERY AND VINEYARD
The Vineyard and the Winery are both over 25 years old. It still has the original vines in production. It is located in a prime area for growing grapes for wine making and is an increasingly popular tourist attraction.
They have consistently had revenues for many years of +/- $1MM and an adjusted EBITDA of $400K. The details are in the data room which will be sent after the NDA is filled out and sent in above. 2013 is the only exception. The revenues in 2013 were just under $900K and adjusted EBITDA was $340K because of the Colorado floods in September of 2013 which prevented them from delivering their wine to a large portion of Colorado through the end of last year. It was a once in 500 year flood and should not be considered in your analysis. In addition, the army corps of engineers have been making improvements to make sure it doesn’t happen again.
They are estimated to have between $1.2MM and $1.75MM in current value Assets depending on the time of year because inventory levels vary seasonally: In October of 2014, they had an estimated $1.75MM in current value inventory, equipment, etc. The Vineyard(Land) is a separate transaction and is estimated to be worth $1MM.
They have 25 wines and dozens of wine based food products that have won many awards. The formulas and wine making techniques are part of the sale.
As of October 31, 2014, they are showing deposits(revenue) up 12%compared to the same period of 2013. The business had an adjusted EBITDA of $340,966 in 2013 on revenues of just under $900K which was down from 2012 because of the September CO flood and its impact on their distribution. In 2012 they had an adjusted EBITDA of $390,454 on revenues of just over $1MM. They have consistently had an adjusted EBITDA of just above or below $400K because they are a family run business and have found a comfortable size.
The sales price has recently been lowered from $2.4MM to $2.1MM. Other important Considerations: You could not start this operation from scratch for less than their sales price of $2.1MM. 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. They currently sell directly to liquor stores by themselves and a new buyer can use a distributor or rent warehouse space in their main market and hire an outside sales person to increase volume and profits.
Location: Rocky Mountain Region USA
The broker can't give additional details without the NDA submitted by clicking on and filling out this link: http://www.listingsummary.com/winery/Non%20Disclosure%20Winery.pdf Email firstname.lastname@example.org to get hold of Jeff Chapman if you have any trouble.
Brief Overview and Selling Points:
This will be an asset sale that will include all of the Brands that they use and all assets associated with the facility and the production. The Assets include the inventory which is 5,435 cases of bottled wines including 1/2 of their "Library" and approximately 15,000 gallons of liquid wine in tanks totaling $1,020,987*. The equipment includes 100 wooden barrels, 12 stainless steel barrels, an automated bottling machine worth, 18 large stainless steel fermentation tanks, a press machine that is a classic that can't easily be found anymore, a de-stemmer/crusher, 2013 van, merchandise, office equipment, and a lot of other specialized equipment and tools that you will see in the video walkthrough of the business worth $646,000. In addition, the intellectual property is included in the sale and they have gotten a professional opinion that it is worth over $100,000 but have valued it at $70,335. The intellectual property includes some very valuable details that can't be identified in this teaser without giving too much away. You can see the Assets in the video walkthrough of the business which is available after the NDA is filled out in the link above. The total Assets excluding their land/vineyard were estimated to be worth $1.74MM in October of 2014.
The real estate is for sale separately and is estimated to be worth at least $1MM for 6.2Acres with a 7,000 square foot custom building with a 20,000 watt solar array. There is also an area above the vineyard on their property that could be used to build a house for the owner to live in or to expand the production. They are in the best location in the best area in their State and have the original vineyard with the original vines still in production on their property. They will agree to sell the land based on one or more independent appraisals to the buyer of the business only.
They produce 25 different wines and dozens of wine based food items. The formulas and techniques that they created to produce their wines will be passed on to the new owner and can easily be replicated. The owners are husband and wife and one of them is the winemaker. The new owner can hire another winemaker inexpensively because several schools have programs now and there is a glut of winemakers with the skills necessary to reproduce the wines as they have in the past. They have a model that works which they can transition to a new owner.
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. They found a comfortable size and decided not to expose themselves to the extra cost and pressure of using a distributor because of this. The new owner can change over from self-distribution to hiring 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.
This is a one of a kind opportunity that is very rare. You can operate the winery yourself which is its own distinct lifestyle or you can hire a winemaker and operations manager and own it remotely. They still operate all 4 tiers of the process themselves: grape growing, production, wholesale, and retail.
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.
They also use "natural growing techniques" that include leaf removal, canopy management, re-introduction of grape pomace as fertilizer, minimal natural pest control, measured irrigation, and hand harvesting. They have produced organic and Kosher wines in the past. These could be produced again someday if the new owner wanted to. They also use extensive cold fermentation with native yeast, natural fining and filtration, and exclusively use stainless steel fermentation tanks when most of the industry uses plastic. This is more expensive but makes a big difference in the quality of their product. Most of the newer Wineries use plastic tanks which reduces quality but is much less expensive to buy. Stainless steel tanks which last forever and help to produce the highest quality wines.
They also have 2 of the finest employees in the industry that have been with them for the entire time that they have been a winery.
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 company’s financials are only basic P & L's that they give to their accountant once a year. A potential buyer will be allowed to discuss their financials with their accountant. They are farmers originally and do not have detailed financials but do have tax returns and all licenses etc. They do keep very detailed records which are mostly in paper form. They have to have meticulous records of everything because they are a regulated business by the ATF. Their numbers are considered at an audited level because of the Federal requirements on monthly bookkeeping. This doesn't mean they create a monthly P & L, just that they know exactly how much of each wine they have and in what form at the end of each month along with a record of where it was sold and to whom.
A new owner will only need to apply for a Federal and State Liquor licenses. A limited winery license can be gotten by the new owner(State license). The limited winery license allows them to produce up to 100,000 gallons a year(they currently are around 25,000 gallons). The limited winery license allows up to 5 satellite sales outlets which is unique to this type of license. These satellite outlets can sell wine accessories, food or be a restaurant, and they can sell other local wines in addition to those of their own manufacture.
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.
Plus, Colorado is the best State in the country to own a business. Please see the web link below. Colorado is THE "#1" fastest growing and strongest economies in the United States, per Money.MSN.com and Business Insider. This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports.
*The inventory can be on the vines, in liquid form fermenting/aging, or in bottles depending on the wine and the time of year. The inventory level also varies by the time of year.
Financial Information: Asking: 80% down on $2.1MM for the business plus the appraised value of the real estate. The buyer will take over the balance sheet free and clear of all debts and the seller will keep the Cash and Receivables.
Please fill out the attached NDA to be able to talk to Jeff Chapman at 303-905-7607 about your interest in this offering.
If you are NOT interested in this business for sale, but you refer someone to us who buys it, we will immediately pay you a referral fee of $2,000. Please send us anyone who you think would be interested in this offering.
Jeff Chapman Eisnaugle
Company Broker Group, LLC.