In the Wine Business? Why You Might Want To Sell Soon
If you are looking to sell the family winery you might want to think about doing it soon. The Santa Rosa Press Democrat reports that a recent study indicates that between 500 and 1,000 family-owned wineries in California, Oregon and Washington could be sold in the coming years. The major reasons for this mass sell-off is that the next generation is either unwilling or unprepared to take the reins from their winemaking parents.
Financier Bill Price, a vineyard owner and co-founder of Texas Pacific Group ttold a wine conference in Santa Rosa on Wednesday that if they want to sell they should do it soon. He cited a study conducted by Silicon Valley Bank which showed that 88 percent of wineries in the United States were founded after 1975. Over half of those surveyed, 51 percent, were planning to transition ownership of their business in the next ten years but 45 percent of those said they don't have any one willing to take over. This function of our Baby Boomer culture could lead to a a cycle in which early sellers will get premium prices but those sellers in the heart of the cycle when everyone is selling will have trouble getting their top price and may have to wait until the end of the cycle when the supply plummets and prices start to rise again.