Agriculture Sector M&A and Earnouts
Valuation challenges in agriculture M&A As in every sector, agriculture company owners and investors often disagree on valuation when negotiating the terms of a potential sale. This is especially true when a valuation depends on a company’s future cash flows, which can be hard to predict due to the inherent volatility of agriculture commodity prices. […]
The effect of WannaCry on M&A within the cybersecurity industry
Last week, a new version of ransomware spread across the globe. It affected hundreds of thousands of users in over 150 countries. Ransomware is malicious software, or malware, that locks a computer’s files. Users must pay hackers to regain access. Typically, payments use untraceable Bitcoins. However, this type of malware has existed for decades, with […]
5 Key Agriculture Sector Investment Issues
Investing in the agriculture sector can provide numerous benefits. For example, a partial shield against inflation risk, the prospect of cash flow and fixed asset value appreciation and several types of optionality. These types include the ability to change a property’s crop mix and even its fundamental use. Despite these advantages, companies in the agriculture […]
Why do we sell our companies?
Recently an important businessman asked me: “Why sell other businessmen your company? Should I be selling mine?” The most common reasons for doing so: 1. Succession: Many businessmen do not have children interested in carrying on the family business; some study aviation, medicine or art and are not interested in business activities. As the saying […]
Ride the wave
Every company has an optimal time to be sold. It is vital to endeavor to know when this moment is. If you are aware that this optimal selling moment will come, you won’t have to regret missing out on it. Mergers and acquisitions come in waves. Certain circumstances provoke a large number of corporate transactions […]
Six Things to Know When Negotiating with a Private Equity
Private equities have well prepared specialists who know how to satisfy their interests and buy at very attractive prices. They will be your partners and you will have to trust them when they become part of your company, but before this will happen, they are your opponents and you should be careful to protect your […]
Ramp up your exit schedule and run the wave
Mergers and acquisitions come in waves. We are in one of those waves. Trying to sell at the point where buyers are paying over the odds is a good strategy. Today there is an excess of liquidity in the USA, Asia and Europe and easy access to cheap debt for anyone asking for loans or […]
Due Diligence, a litmus test in the buying/selling of a company?
Imagine that you are going to buy a flat but you have only been able to view it in photos. You liked what you have seen up to this point but would you really buy it based on a couple a photos? I’m sure the answer in no. Something similar happens during the process of […]
What is a Search Fund?
We are used to seeing and reading in the media terms such as private equity, family office or business angel. But does the same happen with Search Fund? Do you know what it is? And the most important thing, do you know how it can help your company? The concept of investment is very developed […]
The Company or the Business?
Are you thinking about buying that company that you love? You have already decided and succeeded in advancing a few steps in the buying/selling process with the owner. However, you are confronted with one of the most complicated problems of the operation: the seller’s understanding of the inequality that exists between the value of the […]