Confidential Business Review
PURPOSE: The purpose of this Confidential Business Review is to acquaint a prospective buyer with preliminary information regarding a client (Seller) of Business Brokerage Technologies, Inc., dba BizEx. The term ‘BixEx” shall refer to its employees, agents, brokers, financial re-casters, and affiliate brokers of Business Brokerage Technologies, Inc.
DISCLAIMER: The information herein is furnished by the Seller; BizEx has not verified this information and makes no representation or warranty as to its accuracy, completeness, or authenticity. Future earnings may differ from past earnings. Discretionary Earnings is defined as earnings before deducting interest, taxes, depreciation, and amortization, and adding owners’ salary, benefits and non-recurring expenses.
ACCEPTANCE: By accepting this Confidential Business Review, the Prospective Buyer acknowledges the responsibility to perform due diligence review and make its own evaluation and judgement of the business prior to any acquisition or mergers with the Client Company.
PROPERTY: This document is the property of BizEx and represents general information about a business opportunity that BizEx represents on an exclusive basis.
CONFIDENTIALITY: This document is not to be copied or distributed, nor should its contents in any way be divulged to anyone, as it may contain highly confidential financial and operational information; and reports that are considered trade secrets by the Client Company. If you need additional copies, BixEx will provide them upon qualification of the recipient.
If you receive this as a potential financing source, you are obligated to keep the information herein as confidential as possible and are to use it only for making a lending decision. The bearer of this presentation is responsible for its confidentiality.
This information must be held in absolute confidentiality. Any party reviewing this material be held liable for its improper disclosure and could be held liable for damages if such disclosure proves in any way damaging to the Client Company, its owner, employees or suppliers, or to its principals or agents.
PLEASE DO NOT CONTACT THE CLIENT: All contacts with the Seller require prior approval of BixEx. Failure to adhere to this requirement will jeopardize the prospective buyers’ ability to pursue this opportunity.
The Cellars’ Expertise Goes Back 40 Years
Entered Viticulture Industry
Owner starts viticulture career in Sonoma County in the Russian River Appellation
Napa Wineries begins operation on 20 acres in east valley.
Owner starts producing her own wine under Napa Wineries brand
Tasting room opens
Napa Wineries starts leasing property for Napa Wineries tasting room.
Water well with perpetual rights for 44 feet acres of water consumption per year
17.2 acres planted
5,000 sqft building with sleeping quarters, kitchen, living room, and large wine production facility
100 miles from San Francisco
Market is increasingly favoring small wineries
Consumers are leaving lower price segments and progressing toward premium wines, which are expected to grow by 4-8% in 2018
Millennials are favoring premium small-production-scale wines
Gen X’s can afford premium wines
Market values per ton continue to grow across all market segments
The market is developing towards direct-to-consumer sales: larger profits through increasing revenues from tasting rooms, wine club sales, wine tours, etc.
Clearly there is competition…
Napa Ridge Vineyards
Barone Family Vineyards
Coruce Vineyards & Winery
Donato Family Vineyards
Golden Star Wineries
…but Napa Wineries wines are noteworthy
Syrah-Gold Award, Merlot-Silver Award, Zinfandel-Bronze Award
Syrah-Silver Award, Viognier-Silver Award
Cabernet Sauvignon-Silver Award
Unfortunately, the winery relies on quality alone…
- Quality of grapes and wines is truly exceptional
- No marketing investment
- Tasting room is only sales channel
- Grape demand far outweighs supply
- Award-winning wines
- Excellent customer reviews
Development options show promise
Additional income of $960,000 if all grapes were used for wine production at the current prices
Alternatively, close to $50,000 in additional income if the grapes were sold at market prices
Currently no spending on marketing
New sales channels: wine club, non-retail sales, and restaurant sales
10% yield increase from the current 3.3 tons per acre would not affect grape quality
Additional 4 acres available for expansion
Tasting room location can be improved and the opening hours can be increased from 28/week
Revenues can increase up to 900% without price changes
A winery is well positioned for growth
Secure water supply
High quality of wine
Less susceptible to disease
Support from current owner during transition
Lack of marketing
Undeveloped sales channels
Low Utilization of operational capacity
Low brand recognition
Current TR location not ideal
Increases in grape and wine production
Potential for wine tours from San Francisco
Moving tasting room to other location
Impending globalization of wine supply
Decrease in baby boomer business
Current owner is offering an entire year of no-cost training at 20 hours/week in order to preserve legacy and reputation of the vineyard
The Value is Truly Exceptional
Outstanding quality of grapes and wine
Potential wine sales exceeding $1.3 million
Short distance from the most affluent parts of San Francisco
Comprehensive free training by the owner
Limited seller financing available