Background
During the acquisition of a winery, a license from the Alcohol and Tobacco Tax and Trade Bureau (TTB) was omitted.
Challenge
A full vintage of wine was produced without all proper TTB licenses, which resulted in TTB issuing an order to destruct an entire vintage of wine, approximately half in bulk and half in bottled wine.
Solution
The Perkins valuation team analyzed the winery’s business plans, projections, and information from the destroyed vintage, as well as industry trends, to determine the value of the damaged vintage and the future lost profits.