" In recent years , we have seen the Food & Flowers market being disclose much more by secret Equity parties . Until a few year ago , this interest was fairly low , but it has been rise strongly in recent year , " observe Maarten van Dijk and Mariëlle Ansems - Van Mourik of BDO Accountants & Advisors , both work on in the Corporate Finance department .
Maarten van Dijk and Mariëlle Ansems - Van Mourik
development potentialParticularly in the recess of horticultural suppliers , there have been the needful transactions involving a individual fairness party , which Van Dijk says is quite easy explained . " Through Private Equity , investment are made with money from third parties , for instance , big pension stock . On the one mitt , they desire to invest responsibly in society that meet ESG ( Environmental , Social , and Governance ) standard . In summation , it is precisely the companies in expert supplying that are make out for their innovative nature . These companies make growing food for thought and plants in gamy - tech glasshouse more effective . Such go-ahead can offer neat potentiality as solutions to contemporary and next job , stool these companies very interesting for fiscal buyers . They offer solutions to macro movement such as a growing global population , consumers take sure production year - round , and climate alteration . As such , the sphere has a lot of development potential difference . "
" Moreover , it is a relatively static sector , which is gracious for investor . Since the Food & Flowers market provides several canonical necessities , the grocery store is relatively insensitive to cyclic movement . And stability drive sake . However , primary producer seem to be less in the picture . This is partially because - despite their often decent turnover - they are limited in size in terms of governing body and direction and therefore too subordinate on one or more employees , " says Maarten .
Analysis by BDOrecently showed that despite macroeconomic uncertainties and geopolitical turmoil , merger and acquisition activity in the Food & Flowers ( F&F ) sphere remained level in the first one-half of 2022 . Although the number of mergers and acquisition demo a decline in the past six months compare to six months earlier , the entire number of minutes remained relatively unchanging compare to a year ago . " This indicates a degree of insensitiveness to the brusque - condition impression of macroeconomic ontogenesis . However , it remains to be seen how companies and investor will react in the come fourth part . "
Lots of money usable in the market"Take the current gas crisis in horticulture , of which we at BDO have many companies in our client alkali . You see now that there are agriculturist who leave their greenhouse ( part ) empty and betray their energy contract and can come through financially with this . However , there is less supplying on the market , there is the menace of challenger from overseas , and stave are losing their jobs . What effects this might have in the longer term is unmanageable to assess . And specially when it comes to pastime from investor . During the Covid-19 irruption , we thought the deal natural process would make out to a standstill for a while , but it lasted two or three months at most . While it is dependable to speak of a crisis site with the current economic turmoil , there is one big difference from , say , the credit compaction , and that is that there is a sight of money available in the market now . secret fairness party have both increase in numbers but also have much ( more ) capital available . "
increase capital availability is also get by the rise of alternate sources of financial backing . option to Private Equity are the so - called " Alternative Debt Funds , " continues Mariëlle , who is co - creditworthy for the Debt Advisory practice within BDO . " This is - besides the traditional banking television channel - a origin of financing , where the growth of the fellowship is financed with debt ( while retaining your shares ) . This can sometimes be an medium footstep to facilitate growth on which cut-rate sale still follows at a later ( and often better ) time . A resolution for originate entrepreneurs that is increasingly being get ( peculiarly in this sector ) . "
BDO is approached by companies in Food & Flowers as well as investment companies . " This is also where our bestow economic value as a consultant comes into play . Because of our wide internet , we are well placed to connect the right parties . Once you have a good pic of a companionship ’s culture , you’re able to also see the good party to agree it . In a traditional kinfolk business sector , for instance , we are not likely to introduce an Anglo - Saxon fund . "
Getting ready to sellAsked for tips for entrepreneur who are in the market for sales ( and or ontogenesis financing ) , Maarten respond . " First of all , it is authoritative to ensure that the administrative organization is in order for such an issue ( financing , cut-rate sale , or purchase ) . Unfortunately , this is not always the case in practice . Moreover , basic principles are that there is in operation optimization , a good customer spreading , and the ability to outdistance oneself from the party as a seller . These are all elements to make the company sales - quick . What ’s more , you should especially be assisted by an advisor for whom this is day - to - day job . A individual equity party reckon at what vengeance menstruation an investment has , and a debt stock assesses repayment content . This is not always the nuance that an average entrepreneur or DGA is touch with . Therefore , get advice from an advisor who befit you and can serve as an extension . "
For more information : Maarten van Dijk / Mariëlle Ansems- Van MourikBDO Accountants & AdviseursTel : +31 ( 0 ) 030 284 98 00[email protected][email protected]https://www.bdo.nl / nl - nl / branches / food - peak
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