Winery/Vineyard/Distillery Acquisition - Anyone been there, done that? Questions.

[Zach Schwarzmiller]

Greetings BP Community:

I love being challenged in this crazy world of real estate and business investments. I know and have met quite a few awesome individuals via LinkedIn. I invest in small businesses and real estate. I usually invest/develop with partnerships. I also actively do Brokerage throughout all Washington State (mainly Commercial & Multi-Family asset classes). This is my background and knowledge which brings me forward to the current and purpose of my post. I have assembled a team (of four, including myself) and we are buying an off-market winery, vineyard and distillery. We have just reached mutual agreement via a couple rounds of LOI's being sent around and are now having our attorney draft a APA and Operating Agreement while we start due diligence. The winery is located in Washington State, as am I (just north of Seattle) while my partners all live in California near Napa/Sonoma area. They really all have no knowledge of the real estate world but do have skills in marketing, wine making and running wineries. I believe we've assembled a great team. The winery currently looses a little over $100,000 a year (without debt service). As I am more the financially minded one of the group, I am working (in conjunction with their expertise) to figure out a 3-5 year plan to turn profits. This is a very difficult task and if anyone else has been through an exercise like this before, I would LOVE to speak with you. Also, if anyone has any thoughts on our due diligence process which you wish you had known or done differently, that never hurts either!

Thank You Much!

[Walter W.]

Zach,

Sounds interesting. I have a friend who is an author and specialist in Washington wineries. He might have some ideas. I would be happy to introduce you if it was of value.

Best,

Walter