Two Vice Businesses for Sale: A Wine Tasting & Casino - Acquisitions Anonymous EP 60

In this episode of Acquisitions Anonymous, your hosts Bill D'Alessandro, Michael Girdley, and Mills Snell explore two intriguing vice businesses currently for sale: a wine tasting competition business and a casino in Costa Rica.The first business on the table is an 11-year-old wine and spirits tasting competitions portfolio with 80% recurring revenue. The current owner works only five hours a week, making it an appealing lifestyle business with significant passive income potential. This business has established multiple platforms for wine, spirits, and beer producers globally, with suppliers paying to enter competitions and judges volunteering for free. The hosts discuss the potential for growth by expanding into new niches like craft spirits and sparkling wine and targeting new geographic areas. They also delve into the scalability of the business and its impressive earnings.Next up is a casino and hotel located in Costa Rica, priced at $2.4 million. This property includes a large casino, hotel rooms, and an eco-friendly architectural design. Despite the business's potential for expansion and a valid 24/7 liquor license, the hosts express concerns about the regulatory environment and operational challenges. They discuss the risks associated with owning a casino in Costa Rica, including issues with organized crime and the complexities of managing a business in a foreign country.

Market Potential

The wine tasting competition business presents an excellent opportunity for passive income with high margins and growth potential. The hosts highlight the established processes, significant recurring revenue, and potential for geographic and niche expansion as key selling points. Conversely, the Costa Rican casino offers an interesting yet risky investment. The hosts emphasize the need for thorough due diligence and local expertise to navigate the regulatory and operational hurdles.

Unique Selling Proposition (USP)

For the wine tasting competition business, the unique selling proposition lies in its established reputation and scalable business model. The recurring revenue and low operational involvement make it a highly attractive acquisition target. The casino in Costa Rica, with its potential for high returns, stands out due to its prime location and eco-friendly design, but also comes with significant risks.

Scalability

The wine tasting competition business is highly scalable. The hosts discuss how expanding into new niches and geographic areas could significantly boost revenue. The casino, while potentially lucrative, faces scalability challenges due to regulatory and operational complexities in Costa Rica.

Challenges

Both businesses come with their own set of challenges. The wine tasting competition business requires ongoing innovation to stay ahead of competitors and maintain its appeal to suppliers and judges. The casino in Costa Rica faces substantial regulatory hurdles and the potential for involvement with organized crime, making it a high-risk venture.

Investment Potential

The wine tasting competition business is seen as a safer, more stable investment with significant passive income potential and room for growth. The casino, while offering the allure of high returns, comes with a much higher risk profile due to its location and industry-specific challenges.

Sponsors

The episode is sponsored by the David C. Barnett Small Business Podcast, which offers deep insights into small business operations and deal-making. The hosts also thank Trout CPA, a firm specializing in Employee Retention Credits (ERC), for their support.Join Bill, Michael, and Mills as they delve into these fascinating businesses, weighing the pros and cons of each and providing expert analysis to help you decide if either of these vice ventures is the right investment for you.