Page 10 - Grapevine JanFeb 2022
P. 10
In The Winery
value. That means there is a willing seller and a
willing buyer. However, the price could be much
lower in a scenario where the owner is forced to
sell or liquidate, either through bankruptcy, the
sudden death of key people, or litigation. In these
situations, engaging an experienced restructuring
professional is essential. Navigating a distressed
situation is difficult, doubly so when the business is
yours.
There are multiple variables for owners to con-
sider and plan for as they create their harvest
strategy. Being prepared for this transition will help
them avoid costly mistakes or address issues early
enough in the process to make them non-factors.
This planning is essential to maximizing the value of
their business. Owners contemplating making this
transition would be wise to start the process and
create their harvest strategy today.
Edward Webb has over 35 years
of experience in consulting and
financial management, including
specific experience in business
restructuring and leadership
option. The sale could be to an industry peer, a cur- advisory services. Edward has a
rent employee, a high-net-worth individual or even Doctorate in Business Administration and currently
a private equity fund. However, certain factors go leads the Corporate Finance Consulting group at
into the sale and the final price beyond the valua- BPM, one of the 50 largest public accounting and
tion process discussed earlier. advisory firms in the country, where he sits on the
firm’s Management Committee.
Any potential buyer is looking for the ability to
generate future cash flow. Operating a winery takes With more than 15 years of
leadership with specialized education and experi- experience in complex financial
ence. This knowledge includes how to grow and advisory, and a primary focus on
harvest grapes, the manufacturing process, as well valuation services, Kemp Moyer
as storage of the wine. If the sale is to anyone but has led hundreds of business and
an industry peer or employee, this can hobble a asset valuations in his career with
deal or result in a lower sales price. As mentioned substantial industry experience in technology, life
earlier, having a detailed manual on how to oper- science, professional services, food and beverage,
ate the business can help reduce transition issues digital assets, manufacturing, and consumer busi-
that may impact price, but locking down an expert ness, among others. A partner in BPM’s Advisory
to assist with a sale can be essential to getting the practice and head of the firm’s Valuation team,
maximum return in a sale. Kemp’s valuation experience includes M&A and
IPO preparation and support, fairness and solvency
Distressed Resolutions opinions, and litigation support and dispute resolu-
tion, among other high impact analyses.
All the information above is based on the order-
ly sale or transfer of the business at a fair market
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