The value of a wine estate is not « surface area × price per hectare ». That shortcut ignores what really drives value — and risk: the farm lease and tenant rights, the operating business, the brand, stocks, equipment, planting rights, yield history and the quality of the terroir. Two estates of comparable size can be worth very different amounts.
Our role is to objectify value through an independent, multi-scenario approach, cross-referencing several methods rather than relying on one. Valuation then becomes a negotiating instrument, not a mere estimate.
Our valuation methods
- Revalued Net Assets (RNA) — land, equipment and stocks less debt. Suited to asset-heavy estates and share deals.
- Capitalisation of farm rent — reconstituted rental yield with an appellation coefficient. Informs the value of leased land.
- DCF (Discounted Cash Flow) — seven-to-ten-year projection discounted at a sector WACC. Suited to cash-generative operating estates.
- EBITDA multiples — benchmarking against transaction references, as a complement.
The 14 structuring levers
- Choice of vehicle (assets vs. shares)
- Farm lease — term, rent, clauses
- Split ownership
- Earn-out
- Representations & warranties
- Conditions precedent (SAFER, financing, lease)
- Non-compete clause
- Transitional support by the seller
- Allocation of costs
- Treatment of stocks
- Treatment of equipment
- Supply and commercial contracts
- Payment terms (vendor loan, escrow)
- Closing timetable
What we do not do
VITACEAE provides no legal, tax or wealth advice. We identify the economic and technical impacts of a transaction; the recommendation and decision rest with the client's dedicated advisers — notary, lawyer, accountant. This ethical boundary is, for us, a guarantee of independence.
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Further reading
Valuation underpins our Sell-side and Buy-side Advisory. See our references.