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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

Bruce says

We were looking for a method to ensure two of our senior partners could afford to retire in 4 years, and that we could afford to purchase their shares. Jim gave us much more than we expected and spent a great deal of time understanding our issues. His report is one of the most important in our business and will be often referred to in future years.