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Information Case Studies Case Study 6

Case Study 6: Winery Thrives Despite Investment Withdrawal

A start-up winery had a highly-regarded proprietor who was able to put a syndicate together to fund in excess of 27% of the initial capital. Because of the quality of these investors, finance was eventually arranged for the balance.

BizSuccession was engaged at the start of this project and instructed to set up exit strategies to allow the business the option of managing the retirement of a key investor. After a number of meetings with the bank, key investors and the investors' business managers, an agreement suitable to all was devised. After briefing their solicitor, this agreement formed the basis of a legal contract.

The final outcome was of comfort to all parties because they now had a process to work through that was clear and certain. In turn, their bankers would be equally free of any emergency calls for further finance.

Since then, two of the original investment syndicate members have resigned. BizSuccession's planning rules and valuation methods were followed and both capital movements occurred without dispute. And, importantly, all parties are still friendly!

Testimonials

Sean says

We are in business with my parents and brother. Some land had been transferred to my brother and I and we asked Jim to prepare a immediate exit strategy in case one of us had or wanted to withdraw. We sought bank finance to improve the land. Jim was able to do that plus discover a error in how the land was transferred that the bank had missed. Since then my brother has left the state and he is being paid out exactly as we set up; no argument.