What to Expect When Buying or Selling a Winery

In this episode of Expert Talks, we explore the evolving landscape of winery mergers and acquisitions (M&A) with Erik McLaughlin, Managing Partner at Metis. Whether you’re planning for the next generation, facing financial headwinds, or eyeing strategic growth, Erik breaks down what sellers and buyers really need to know to navigate a successful transaction.

Why Now? A Market Ripe for Change

The wine industry is no stranger to change, but the current climate feels seismic. With oversupply, shifting consumer preferences, and increased consolidation, many wineries are finding themselves at a crossroads. Erik explains that while these challenges are real, they also create opportunities for well-aligned deals, whether you’re a top-performing brand looking to scale or a buyer seeking the perfect puzzle piece to round out your portfolio.

What Types of Transactions are Actually Getting Done

There are only a few types of deals that happen in the world of mergers and acquisitions, and Erik breaks down what deals are currently getting done.

• A+ Wineries: First, the rare “A+” wineries are the highly profitable, well-known businesses These wineries can still command top dollar, even in a soft market.
• Opportunistic Deals: On the flip side, there are opportunistic deals, where distressed or time-sensitive assets change hands simply because the price is right, though sellers often walk away less satisfied.
• Puzzle-Piece Fits: The majority of transactions, however, fall into a third category: puzzle-piece fits. These are strategic acquisitions where the buyer sees a uniquely strong alignment with their goals and is willing to pay a fair value, even in a tough market.

What’s Driving a Winery to Consider a Merger or Acquisition?

The common thread?

→ Both sides are looking for clarity, and that’s where preparation and professional guidance come in.

The Valuation Equation

Valuing a winery isn’t one-size-fits-all. Erik walks us through the two most common approaches: EBITDA-based and asset-based valuation, and how they apply depending on your winery’s size, structure, and goals. His advice: Don’t wait until you’re ready to sell to understand your valuation. Be proactive. Know what it costs to make each wine, and have tight cost accounting practices. Engaging financial and legal advisors early ensures you’re positioned for the strongest possible outcome.

Avoiding Deal Disasters

Every deal hits bumps. Mismatched expectations, communication breakdowns, or lack of transparency can stall even the most promising transaction. Erik emphasizes the importance of

• Setting clear goals and timelines,
• Staying grounded in reality, and
• Leaning on experienced advisors to bridge the gap between buyer and seller expectations

Integration Is Where the Real Work Begins

Erik is quick to point out that closing a deal is just the beginning. The real magic (and potential pain points) lie in post-merger integration. Culture, leadership, and legacy all play a role, especially when a founder stays involved after the sale. The most successful transitions happen when both sides approach the process with humility, clarity, and a shared vision for the future.

Thinking About a Transition?

If you’re even considering a sale or acquiring another brand, this episode is a must-listen. Erik and his team at Metis offer no-obligation consultations to help winery owners assess their options and build a roadmap for the future. It’s not about rushing a sale, it’s about making smart, informed decisions when the time is right.

Watch or listen to the full episode to hear Erik’s insights on navigating one of the most high-stakes decisions a winery can make.