Holy Cross Abbey Winery in Colorado for Sale

After 25 years, Larry Oddo, owner/CEO of The Winery at Holy Cross Abbey in Canon City, Colo., plans to retire and is looking for a buyer. The asking price is $850,000. Gross revenue is $1.27 million.

In its 25 years in business, the winery has won more than 1,200 medals and awards in international competition. The winery is currently listed for sale but has yet to attract a buyer. If the winery does not sell, Oddo says it will close its doors Sepot. 30.

This turnkey, asset-rich operation offers far more than an established production facility. About 60% of revenue is generated through high-margin Direct-to-Consumer (DTC) sales, supported by a successful tasting room, boutique retail operation, and an active mailing list of more than 12,000 loyal customers.

The property includes a 6,789-square-foot production facility, 2,468 square feet of retail and office space, and more than 27,400 square feet of beautifully maintained outdoor event space designed to host tastings, celebrations, and community events.

The winery has built an exceptional reputation not only for award-winning wines but also for its deep community involvement. It has played a significant role in developing and supporting regional events, including the Royal Gorge Whitewater Festival, the Cañon City Balloon Classic, and its long-running Annual Harvest Fest.

With an experienced staff, an accomplished head winemaker, established operating systems, and decades of brand recognition, this acquisition provides an exceptional platform for an entrepreneur, strategic buyer, or winery operator looking to expand with an iconic Colorado label.

To facilitate a successful transition and encourage a buyer to continue the winery's legacy, the seller has reduced the asking price by $100,000, with a corresponding reduction in included inventory.

It is the first Colorado winery to have its wine placed in a National Park and is currently available at Yellowstone National Park.

If No Buyer, Why Close? Sell to Employees Instead

Assuming the winery is profitable, there is no reason for Oddo to simply close the winery and walk away. As part of his planning, he should seriously consider creating an Employee Stock Ownership Plan for a gradual sale, forming a worker cooperative or executing a management buyout using SBA loans or installment payments.

Selling to employees can offer massive tax advantages. For example, under section 1042 of the IRS tax code, if you sell 30% or more of your company stock to an ESOP or an employee cooperative, you can defer the capital gains taxes on the transaction.

Usually, an ESOP borrows money from a bank. Unlike most businesses, the company can repay the debt used to acquire stock in the ESP{ with pretax dollars. Yes, pretax dollars.

For full information on Employee Stock Ownership Plans and Employee Cooperative Ownership Plans, click here.

Always consult a tax attorney or CPA to optimize the deal.