How to Sell a Winery: Preparing Buyers and Their Lenders
Many buyers of a winery finance part of the purchase, so a sale depends not only on finding the right buyer but also on that buyer’s lender being comfortable with the business, the land and the inventory. Owners who want to sell a winery can improve their chances of a smooth closing by preparing the financial records, permit plan, inventory and vineyard records, club data and team that buyers and lenders will want to review.
This article is general guidance for owners of existing, operating wineries and vineyards. Every sale is different, and sellers should work with qualified attorneys, accountants, tax advisors and, where appropriate, business brokers, appraisers or valuation professionals. Nothing here is legal, tax or financial advice.
Start Preparing Early
Time allows an owner to clean up records, document club retention, reduce dependence on themselves and address issues that could concern a buyer or lender. Because a winery’s year revolves around harvest, sellers may also want to consider how timing affects the transition.
Organize the Financial Records
- Several years of tax returns and financial statements that reconcile with each other
- Sales by channel: tasting room, club, direct shipping, wholesale, events and grape sales
- Inventory costing by vintage and how it ties to the financial statements
- Documentation for any personal or one-time expenses you expect a buyer to add back
- A complete schedule of existing debt
Clean records help buyers and lenders verify earnings. Our guide to winery valuation explains how the business, land and inventory are evaluated.
Prepare the Permit Plan
Buyers will need to know which permits and licenses the winery holds, which states it ships to and what the buyer will need to obtain. See our article on winery permits and licenses.
Document Wine Inventory and the Vineyard
Organize inventory by lot, vessel and vintage, along with barrel records and wine held elsewhere. For vineyards, gather maps, block and vine age records, harvest history, water information and grape contracts. See our article on wine inventory at closing.
Document the Club and Distributors
Prepare club membership history, shipment records and distributor agreements, with privacy and confidentiality reviewed by counsel before sharing customer data.
Reduce Owner Dependence
If you are also the winemaker or the face of the tasting room, buyers and lenders will want to know how the business will run without you. Developing a winemaker or managers, documenting processes and offering a transition period may help. See our article on winemaker retention.
Prepare for Due Diligence
Buyers will examine financial records, permits, compliance history, land use approvals, facilities, vineyards, water, staff and insurance. Gathering these materials in advance can reduce delays. Our winery due diligence checklist shows what buyers typically request.
Understand What Lenders Need From the Seller
The buyer’s lender may ask for information only the seller can provide, such as tax returns, inventory reports and permit details. Some loan programs also have rules about the seller’s continuing involvement after closing. Responding completely helps keep financing on track, though timing depends on the lender and the transaction.
Consider Deal Structure and Seller Financing
Sellers should consider whether they would accept part of the price over time, including payment for some inventory as it sells. See our article on winery seller financing and earnouts.
Protect Customers and Staff During the Sale
Premature news of a sale can unsettle staff, club members, growers and distributors. Many sellers share information under confidentiality agreements and announce the sale when closing is near.
US Professional Funding helps qualified buyers finance the acquisition of existing, operating wineries and vineyards, which can help sellers reach a closing. Learn more about our winery and vineyard acquisition financing.
