Château d'Agel (A): From concept to deal
Robin Budowski, a wine specialist and enthusiast, had dreamed about owning and running a vineyard for years, and on 28 July 2003 he was closer than ever to realizing his dream. He was putting the finishing touches to an offer to acquire Château d’Agel, a property in the Minervois region in the South West of France. The property, undermanaged and located in one of the cheapest wine AOCs, would be turned around on three dimensions: (1) improving the wine quality, (2) supporting the property’s reputation with marketing campaigns, and (3) equipping it with the appropriate distribution channels. Château d’Agel seemed like the perfect candidate for a buyout. But a number of issues had to be solved before closing the deal. How would Robin structure the transaction so as to have minimal tax exposure in France and even less exposure for his investors, mostly non-French Europeans? The pure financial returns of wine properties are relatively modest, in particular when adjusted for the risk of agribusiness operations. So Robin needed to go after passion investors, i.e. enthusiasts. These investors expect large “affiliation” benefits from owning part of a vineyard. But how do you attract enthusiasts, in this case wine lovers, as investors? In other words, how do you maximize the non-financial benefits in the investment package?
SAS Château d'Agel, Consumer Goods, Wine and Spirits
2003-2007
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]
Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]
NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications
Startups can harness their inherent agility to stir up stagnant, risk-averse industries, suggests IMD’s James Henderson.
Whatever scenarios we might imagine about the next wave of globalization, cities are striving to be future-ready. It is now clear that in doing so ...
By 2026, it's predicted that over 80% of organizations will have employed generative artificial intelligence (GenAI) in some capacity, up from less...
Choosing a CEO is a crucial decision for any company, but it becomes particularly complex in family businesses. This difficulty stems from the need...
Family businesses often have not only financial wealth but also nonfinancial values that make them different from nonfamily companies. For instance...
Leadership presence (LP) is widely acknowledged as a foundation of effective leadership. Historically, LP has been conceptualized as a collection o...
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD 8 May 2024
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications