Thursday, March 22, 2018

#7 Barbarians at the Gate


While Kravis Kohlberg and Roberts will, much to their chagrin, be forever associated with the acclaimed novel and precursor to a financial model that both created and destroyed value across the world; it’s application with the wine industry is interesting. It can definitely be leveraged as a tool to fuel significant growth aspirations, but may also be odds with the tension between financial returns and quality, authenticity and legacy. It may also be an interesting tool to diversify wealth for many family owned businesses, as well as method through which to strategize succession planning when there may not be interest or talent within the current generation. Given the global trends with respect to wine demand, watch this space for more geared growth deals, and possible consolidation within particular parts of the community.

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