From February 1, 2022, InVenture, SmartFarming and Kosovan Legal Group will combine their expertise in a joint project AgriDeal.
AgriDeal is a platform for agribusiness sellers and buyers that combines experience in attracting investment, extensive land and legal expertise of partner companies to support agribusiness purchase and sale agreements. The project aims to ensure the possibility of buying and selling existing enterprises, taking into account the complexity of such deals.
“More than 10 years of experience in the M&A market in the agricultural sector shows that the tasks in the field of buying and selling agribusiness require diverse expertise: agronomic, financial, legal, brokerage, understanding trends in the agricultural sector, up to monitoring the current state of market players. One company with all the available resources can not effectively solve this set of tasks.
Our alliance is based on the experience of fruitful interaction and successful solutions for the benefit of our customers. This collaboration will allow our existing and new clients to receive a unique service — comprehensive professional support of selling&buying of agricultural companies in Ukraine”, — says Oleksiy Oleynikov, Managing Partner of InVenture.
For a seller, AgriDeal will provide the following range of services:
- effective preparation for sale, which includes a thorough inspection of all assets, reporting, and finances of the enterprise;
- digitization of the land bank value, taking into account each hectare;
- identification of critical risks and drawing up a roadmap to address them before closing a deal;
- search for an investor and promotion of investment proposal through AgriDeal communication channels;
- preparation of an investment plan for the parties and creation of a data room;
- counseling and mediation in negotiation processes;
- structuring the agreement and full transactional support.
Among AgriDeal services for a buyer:
- search for assets according to the provided criteria;
- complex audit of agricultural companies and their assets;
- independent expert assessment of the feasibility of investment and potential risks of the deal;
- support of negotiations, representation of interests and consultations at all stages of the deal;
- recommendations concerning the approach to agricultural production and improving its efficiency through the use of modern technologies;
- support of new legal structure introduction on the market.
“Effective purchase and selling transactions involve multi-level interaction between the buyer, the seller, and consultants involved, from which all stakeholders will benefit. The buyer is interested in acquiring a valuable asset that meets the criteria, risks prevention, and return on investment. The seller benefits from maximizing the value of the business and negotiating balanced terms of the agreement. Here we are talking not only about engaging professional competencies but also about saving time, managing the preparation of the agreement, verification, evaluation of assets, etc.”, — commented Nazar Malyniak, Partner at SmartFarming.
The key features of the platform that distinguish it from land selling projects are:
- vast and diverse experience in projects for leading Ukrainian agricultural companies;
- unique expertise and all the necessary infrastructure for the implementation of complex projects;
- integrated approach — solving the whole range of tasks, from situation analysis and project development to post-transactional support.
According to the project founders, the AgriDeal platform expertise is not limited by the regulation of assets value in the interests of the parties. The project specialists will help to find a suitable asset or investor, structure and close the deal, as well ensure further development of the asset. AgriDeal is not about quick sales, but about a systematic multi-level approach and achieving maximum results for all parties.
“It is quite possible that in five years after the admission of legal entities to the purchase of agricultural land there will be plenty of offers to buy agricultural enterprises with land under cultivation. However, the interest in buying a ready-made agricultural business will not be affected in any way, only algorithms of verification and the asset value will change. Given these trends, sellers and investors will need a convenient, comprehensive tool to enter, and, more importantly, exit the agribusiness. We see the prospects of the AgriDeal project in this”, — says Anatoliy Kosovan, Managing Partner, Kosovan Legal Group.
SmartFarming is an integrator of technologies in crop production, providing a full range of services for land bank management and improving the efficiency of agricultural operations. The company has developed a unique software product for land bank management — ProZemli. SmartFarming experts accompanied the purchase and sale of agricultural companies with a total value of $500,000 to $40 million.
Kosovan Legal Group is a law firm whose main focus is to support the activities of agricultural and grain trading companies. Specialists of the Kosovan Legal Group accompanied more than 40 purchase and sale agreements of agricultural companies, during which a legal audit was conducted. Every year the company provides legal services to agricultural producers, whose total land bank is more than 690 thousand hectares.
InVenture is an investment brokerage company engaged in attracting financing for investment projects, selling companies from various sectors of the economy, finding and selecting assets for investment, as well as building and implementing investment strategies and private equity management. As of the beginning of 2022, InVenture has implemented more than 20 M&A deals in the agricultural sector of Ukraine for a total of $ 170 million.