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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

Andrew said

Jim pro­vided very sound and practical advice on what to do if one of the busi­ness partners wanted to leave. His Suc­ces­sion Agree­­ment elim­ina­ted any questions as to what would hap­pen and how it would hap­pen. Thanks Jim.