Hwl

RISKS ? Possible loss of control ? Lack of cash ? VQA appointment ? Quality of the vines ? Yield of the vines ? Weather OPPORTUNITIES ? progressive financing ? Payment on machinery could cease ? Premium wine market growing ? toll for wine growing ? Pierres experience and expertise ? Future on site/Inter realize sales ? Low cost operation The results could be split than those shown in Appendix I, since this analysis does not include any revenue from the farm for 2001 and 2002 or from the sale of lower path grapes. We break also assumed that HWL will obtain the VQA designation and will therefore be able to command higher(prenominal) prices for its wine. If HWL does not obtain this designation, the results will be quite different. We did not take into account potential sales through crime syndicate deliveries and the Internet, since we do not know whether this is legally feasible. Ventura will digest a 25% interest in HWL at the outset, still this interest could increase to more than 50% if HWL is in heedlessness and the loan is converted. Pierre would then lose control oer appointments to the Board, destroying his life-long dream of owning and operating a winery.

However, our projections for 2005 show that, when fully operational, the dividing line can generate sufficient cash to accumulate the derive required to reimburse the loan and buy back the shares in 2007. The price set for the repurchase of the common shares is high. Ventura wants $500,000 for shares for which it will have paid $200,000, which means a $300,000 premium over sevensome years, i.e. $43,000 per year. However, it would be very difficult to find other, less big-ticket(prenominal) sources of capital. As the correspondence is still at the drafting stage, it may be possible to negotiate better terms. In addition, the agreement should state whether GAAP is to be followed in determining net income before income taxes. The presentation to Ventura should highlight the strong points of the business and the manufacture and present solutions for any... If you want to get a full essay, stage it on our website: Ordercustompaper.com

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