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HOW TO APPROACH A WINE ACQUISITION PROJECT

How to approach a wine acquisition project

      The project of acquiring a wine property is based on several interests, often combined. First of all, of course, the interest for the wine business, then the financial interest, the fiscal interest, the economic interest, and why not at the same time the desire for a property of character.

      BLUE SIDE is a specialist in the purchase and sale of vineyard properties and estates in Provence. We offer properties ranging from a few hectares for pleasure to large industrial-scale vineyards.
From one to the other, the approach is radically different, but as professional assets, the economic approach remains a constant. The fact remains that the agricultural enterprise is particular in that it is subject to medium-term returns on investment and to possible climatic hazards.
      It should also be remembered that the analysis of the financial data of a winegrowing operation only offers an accounting view of past investments, expenses and revenues. It does not prejudge its structural state or its exploitable potential.
This is why we recommend a methodical approach for the smooth running of the project.

First phase: the inventory

      After the paper presentation, an in situ presentation of the estate allows us to objectively appreciate the reality of the location, the terroir, the state of the vineyard and the installations, and finally the management implemented.
      This initial approach is essential to avoid the pitfall of hasty conclusions based solely on administrative and accounting data.

Second phase: technical and financial analysis

      At the end of the on-site presentation, we provide the fundamental technical documents for an in-depth study of the winery:

      The CVI (computerized vineyard register). Key document of the exploitation, re-edited by us to be exploitable on its multiple data.

      Crop declarations. To be correlated with:
- the CVI (PDO, PGI, GIS areas, grape varieties and vineyard maturity)
- the method of cultivation (intensive, reasoned, organic, manual or mechanized harvest, ...)
- the amendment of the vineyard
- climatic events

      Balance sheets and income statements. To be correlated with:
- harvest declarations, which provide essential information on the quality and quantity of the farm product
- the targeted market (individuals, professionals, CHR, ...)
- packaging (bulk, BIB, bottles)
- distribution channels (sales in the cellar, wine merchants, distributors, supermarkets, exports, etc.)
- the stock
- sales prices and production costs
- payroll
- ...

Finally we can draw the first conclusions

      With the support of this in situ presentation and the in-depth technical analysis, we are able to judge:
- the conformity of the offer with the market
- qualities and defects of the operation
- of the exploitable growth potential

    It goes without saying that in parallel with this second phase, the administrative terms of the transfer will have to be studied: structuring of the land holding and operation, inherent taxation, operating permits, etc.

      Throughout this process, we assist our clients and provide our expertise in order to reach the right conclusions for each project.
It is on the basis of this tangible approach that we are able to offer subsequent assistance in the transfer and takeover of the farm.

Arnaud COURRET
BLUE SIDE - Transactions, purchase, sale, of properties and wine estates in Provence
www.blue-side-proprietes-viticoles.com

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