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80 p r a c t i c a l w i n e r y & v i n e ya r d M ay 2 0 1 4 w i n e B U S i n e S S wine business is complex (including win- eries, vineyards, inventory and brands)," explains Hanley, "we look at the attri- butes, strengths and risks of a situation and then devise a financial package that is right for our client's business model." The Pattersons' financial package includes a $4 million loan, which the Pat- tersons hope to repay in nine years. "We do not like debt," insists Ellie, who shared that they have been paying down the loan at a rate of $500,000 per year since making their first payment in January 2008, and expect to pay it off in 2016. The loan was finalized in December, less than four months after Ellie first approached SVB, and the sale was completed later that month. Expanding "Eden" The Cinnabar acquisition included a tank room, upstairs living quarters, three 1,000-square-foot cut-and-cover caves, 55 acres with 12 acres planted in vineyards and a separate house. The Cinnabar brand and inventory were not included. Not only did the purchase expand operations, it also served as the catalyst for a second label and vineyards, Domaine Eden, which Ellie conceived shortly after they took occupancy of the property in June 2008. "The name makes sense because it complements the Mount Eden Vineyards brand," she adds. The initial vineyards of Cinnabar 's founder, Tom Mudd, consisted of Mount Eden clonal selections of Chardonnay and Cabernet Sauvignon. Eight more acres were planted in 1991 with Pinot Noir Dijon clones. However, in the late 1990s most of the vines were replanted with other clones and rootstock better suited to the site. Shortly after the Pattersons took occu- pancy of the property, Jeffrey replaced Domaine Eden hillside vineyard of Cabernet Sauvignon that has been budded over to Pinot Noir. www.PracticalWinery.com and click BOOKSHELF Your source for informative technical books. ORDER TODAY!