Case Study

Château d'Agel (A): From concept to deal

18 pages
April 2007
Reference: IMD-3-1790

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?

Keywords
Lifestyle Business, Vineyard, Wine, Turnaround Management, Agribusiness, Business Plan
Settings
Europe, France
SAS Château d'Agel, Consumer Goods, Wine and Spirits
2003-2007
Type
Field Research
Copyright
© 2007
Available Languages
English
Related material
Teaching note, Video
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This case study is part of a series
  • Chateau d’Agel: Third time lucky?
  • Château d'Agel (A): From concept to deal
  • Château d'Agel (B): Living the dream
2007 EFMD AWARD WINNER (Euro-Mediterranean Managerial Practices and Issues)
This case study is part of a series
  • Chateau d’Agel: Third time lucky?
  • Château d'Agel (A): From concept to deal
  • Château d'Agel (B): Living the dream
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Château d'Agel (A): From concept to deal
By Benoit F. Leleux and Isabelle Pigeaux
Case reference: IMD-3-1790 ©2007
Summary
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...
2007 EFMD AWARD WINNER (Euro-Mediterranean Managerial Practices and Issues)
Reference IMD-3-1790
Copyright ©2007
Copyright owner IMD Copyright
Organization SAS Château d'Agel
Industry Consumer Goods, Wine and Spirits
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications

Château d'Agel (B): Living the dream
By Benoit F. Leleux and Isabelle Pigeaux
Case reference: IMD-3-1791 ©2007
Summary
In early 2007, some three and a half years after realizing his dream of acquiring the Château d’Agel vineyard in the Languedoc region of southern F...
2007 EFMD AWARD WINNER (Euro-Mediterranean Managerial Practices and Issues)
Reference IMD-3-1791
Copyright ©2007
Copyright owner IMD Copyright
Organization Château d’Agel
Industry Consumer Goods, Wine and Spirits
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications