There is no doubt that wine manufacturing business is a very profitable and long standing business. It is in fact an important source of foreign exchange for this country apart from providing employment to thousands of people, especially in the rural areas. For many wine manufacturing is a family business in which they have been indulgent for the past many decades. However, with increasing competition and changing customer behavior and buying practices, it is now becoming difficult for even established wine merchants and manufacturers to move the business to higher levels of success. Under such circumstances it is important for them to find out better ways and means to not only survive but also improve their business. Towards this objective, there are quite a few steps that could be taken and one such option is to take over an existing wine manufacturing unit.
While this is without any doubt a good opportunity to grow inorganically it has to be done very carefully after weighing the pros and cons. There has to be a thorough due diligence process and it has to be done by qualified and experienced professionals. The decision has to be carried forward only when it is viable and manageable from the long term perspective. Amongst the many professionals who are very important, the role of real estate lawyers/advocates, property valuation professionals and others are worth mentioning.
The role of property valuers when buying vine manufacturing units is crucial because of many reasons. First and foremost, they play a big role in valuing the entire unit and help the buyer to have a clear idea about the fair market value of the property. Valuing a vine manufacturing unit is not the same as valuing any other real estate home or apartment. The parameters are different, the inputs are different and the valuation methods and systems can also be different. It is therefore very important for buyers to look for valuers who have relevant experience and expertise in this area.
Apart from the fair market value, which is just one part of the entire assignment, the valuer should also play a role in helping the buyer to have information whether such a buy out is viable and manageable in the medium and long term.