• Home
  • Comm RE Appraisal
    • Commercial RE Appraisal
    • Estate Gift Tax Valuation
    • 50% FEMA Appraisal
    • Reserve Study HOA
    • CRT & Donation Valuation
    • Site Selection Process
    • Capital Assets Valuation
    • ASC 805 PPA Real Property
    • Hotel Resort Valuation
    • Winery Vineyard Valuation
  • Business Valuation
    • Business Valuation
    • ESOP Valuation
    • Impairment Loss Valuation
    • M&A, Business Exit Plan
    • IP Patent Valuation
    • ASC 805 PPA Business Comb
    • STARTUP, 409a Valuation
    • Transfer Pricing Study
  • Cost Seg
    • Cost Segregation Study
    • CS Partial Disposition
    • CS FOR RENOVATION, UOP
  • Forensics Financial
    • Divorce Valuation
    • Business Interruption App
    • Economic Damages
    • Bankruptcy Valuation
    • Fire Ins Replace Cost App
    • Real Estate Damages
    • Personal Injury, WD, WT
  • Comm RE Advisor & OZ
    • CRE Investment Advisor
    • Incentives Advisory
    • Opportunity Zone Overview
    • OZ Who Can Benefit
    • OZ Advisory Services
  • Qualifications
  • Contact Us
  • More
    • Home
    • Comm RE Appraisal
      • Commercial RE Appraisal
      • Estate Gift Tax Valuation
      • 50% FEMA Appraisal
      • Reserve Study HOA
      • CRT & Donation Valuation
      • Site Selection Process
      • Capital Assets Valuation
      • ASC 805 PPA Real Property
      • Hotel Resort Valuation
      • Winery Vineyard Valuation
    • Business Valuation
      • Business Valuation
      • ESOP Valuation
      • Impairment Loss Valuation
      • M&A, Business Exit Plan
      • IP Patent Valuation
      • ASC 805 PPA Business Comb
      • STARTUP, 409a Valuation
      • Transfer Pricing Study
    • Cost Seg
      • Cost Segregation Study
      • CS Partial Disposition
      • CS FOR RENOVATION, UOP
    • Forensics Financial
      • Divorce Valuation
      • Business Interruption App
      • Economic Damages
      • Bankruptcy Valuation
      • Fire Ins Replace Cost App
      • Real Estate Damages
      • Personal Injury, WD, WT
    • Comm RE Advisor & OZ
      • CRE Investment Advisor
      • Incentives Advisory
      • Opportunity Zone Overview
      • OZ Who Can Benefit
      • OZ Advisory Services
    • Qualifications
    • Contact Us
  • Home
  • Comm RE Appraisal
    • Commercial RE Appraisal
    • Estate Gift Tax Valuation
    • 50% FEMA Appraisal
    • Reserve Study HOA
    • CRT & Donation Valuation
    • Site Selection Process
    • Capital Assets Valuation
    • ASC 805 PPA Real Property
    • Hotel Resort Valuation
    • Winery Vineyard Valuation
  • Business Valuation
    • Business Valuation
    • ESOP Valuation
    • Impairment Loss Valuation
    • M&A, Business Exit Plan
    • IP Patent Valuation
    • ASC 805 PPA Business Comb
    • STARTUP, 409a Valuation
    • Transfer Pricing Study
  • Cost Seg
    • Cost Segregation Study
    • CS Partial Disposition
    • CS FOR RENOVATION, UOP
  • Forensics Financial
    • Divorce Valuation
    • Business Interruption App
    • Economic Damages
    • Bankruptcy Valuation
    • Fire Ins Replace Cost App
    • Real Estate Damages
    • Personal Injury, WD, WT
  • Comm RE Advisor & OZ
    • CRE Investment Advisor
    • Incentives Advisory
    • Opportunity Zone Overview
    • OZ Who Can Benefit
    • OZ Advisory Services
  • Qualifications
  • Contact Us


Commercial Business Valuation, Cost Seg, Financial Forensics

Commercial Business Valuation, Cost Seg, Financial Forensics Commercial Business Valuation, Cost Seg, Financial Forensics Commercial Business Valuation, Cost Seg, Financial Forensics

WINERY AND VINEYARD VALUATION

Purpose and Use of Winery Vineyard Appraisal

Purpose and Use of Winery Vineyard Appraisal

Purpose and Use of Winery Vineyard Appraisal

–Financing, lender’s collateral    

 

–Financial Reporting (FASB & International Standards)  

   

–Sale or Purchase   

  

–Disputes involving Value   •Dissenting Shareholders, Family Disputes, Divorces, Partnership Dissolutions •Eminent Domain    

 

–Taxes   •Estate Planning, Minority Discounts •Allocations for Income Tax Depreciation •Property Tax Assessment Appeals •Capital Gains Calculations

Understand The Current Economic Conditions

Purpose and Use of Winery Vineyard Appraisal

Purpose and Use of Winery Vineyard Appraisal

• Consumer spending and tourism     

• Nonfinancial services     

• Manufacturing     

• Real Estate and Construction     

• Banking and Finance    

• Agriculture and Natural Resources     

• Employment (Federal and California)    

• Per capita alcohol consumption on the increase   

• Demand for both wine is on the increase    

• Industry Cycles     

• Consumer Preferences    

• General Economic Trends     

• Global Factors

Cost Approach Method

Purpose and Use of Winery Vineyard Appraisal

Market Approach Method

–Land as Capital Cost (Return on, or opportunity cost of land)    

 

–Area and site specific costs 

    

- Vines, Trellis, Irrigatin, Reservoir, Wells, Pumps, Roads, Fences, Land Improvements    


- Facility FF& E (Fixtures, Furnishings, and Equipment)   

 

–Entitlements     


–Cost of Capital   

  

–Entrepreneurial Profit  

   

–Depreciation (Living vs. non-living) 


–“Mature” vs “Developed”

Market Approach Method

Going-Concern Business Value

Market Approach Method

Sales Comparison Approach:   

  

– Unit of Measure     

•Price per Acre     •Price per Ton?     •Price per foot of Cordon ?

     

– Characteristics Compared  

   

– HOMESITES    (Vineyard Estate consists of Vineyard, Land, and Homesite)     



Transaction method:    


• Most transactions are private; very difficult to get pricing, terms, other stats on private transactions     

• Obtain Merger & Acquisition data

Income Approach Method

Going-Concern Business Value

Going-Concern Business Value

• Most commonly used approach for operating companies     


- Capitalized Cash Flows     


- Discounted Cash Flows     

• Invested Capital methodologies and EBITDA multiples   

  

- Can be high depending on the brand value     


- 7x to 10x is not unusual     


- Can exceed 12x with exclusive integrated estate wineries, when brand and real property assets are included

Going-Concern Business Value

Going-Concern Business Value

Going-Concern Business Value

Winery types.      


There are three primary types of wineries:
an integrated winery, a merchant winery, and a hybrid winery. These types can vary in size and organization structure, and each has its own advantages. A merchant winery buys all grapes. A hybrid winery owns a vineyard, however buys a variety of grapes to blend or make their labeled-wines per their likings.     


Winery valuation as a going-concern business must consider the following pertinent questions:     

1. Are the books maintained on a cash or accrual basis?     

2. What inventory costing methodology is being used? (Fifo or Lifo)     

3. Where does the winery source its grapes?     

4. Are winery and vineyards leased from a related party?     

5. What are future capital requirements?     

6. Is the winery’s forecast reliable?

Copyright © 2017 Commercial Appraisal & Business Valuation,  Cost Segregation Study, Commercial Real Estate Appraisal, Replacement Cost Appraisal, Capital Assets Valuation, Company Business Valuation, Fairness Opinion, Solvency Opinion, Estate Tax Valuation, Gift Tax Valuation, IP Valuation, - All Rights Reserved.  David Hahn, Certified Valuation Analyst (CVA), Certified M&A Advisor (CM&AA), Certified Commercial Investment Member (CCIM), Master Analyst in Financial Forensics (MAFF), Accredited Senior Appraiser (ASA), California State Certified General Appraiser License #AG009828, CA DRE Broker License #00902122

  • Commercial RE Appraisal
  • Estate Gift Tax Valuation
  • 50% FEMA Appraisal
  • Reserve Study HOA
  • CRT & Donation Valuation
  • Site Selection Process
  • ASC 805 PPA Real Property
  • Hotel Resort Valuation
  • Business Valuation
  • ESOP Valuation
  • Impairment Loss Valuation
  • IP Patent Valuation
  • ASC 805 PPA Business Comb
  • STARTUP, 409a Valuation
  • Transfer Pricing Study
  • Cost Segregation Study
  • CS Partial Disposition
  • CS FOR RENOVATION, UOP
  • Business Interruption App
  • Economic Damages
  • Bankruptcy Valuation
  • Fire Ins Replace Cost App
  • Real Estate Damages
  • Personal Injury, WD, WT
  • CRE Investment Advisor
  • Incentives Advisory
  • Opportunity Zone Overview
  • OZ Who Can Benefit
  • OZ Advisory Services

Powered by