Business acquisitions in agriculture and horticulture
The Dutch agriculture and horticulture industry is leading worldwide. This industry has a key role in the Dutch economy, with a yearly export of approximately 65 billion euros in agricultural products and the entire chain to suppliers. The growth is being driven by the rising of the world’s population.
Trends and developments in agriculture and horticulture
There is quite a lot of movement in the agriculture and horticulture industry; virtually every company in this industry is looking for improvement and new markets. Innovation and digitisation are employed to improve production processes, battle waste, and gain insight into the customer’s requirements. Because of the demanding and ever-changing market demand, the standard also goes up. This leads to a better scale; companies move with innovations. Because of these innovations, the originally traditional character is slowly starting to disappear.
The continuous development in agriculture and horticulture can lead to entrepreneurs having trouble staying in control of their companies. Because of increasing competition, complex logistic situations, and changes in legislation the pressure to invest is also increasing. Many of these companies are family-owned, and a successor is not always guaranteed. All these factors cause a high degree of consolidation in agriculture and horticulture.
Technology and sustainability in greenhouse horticulture
There is a shortage of food worldwide; this also means that there is a strong need for larger areas with lots of water. In the Netherlands, we see a shift towards greenhouse horticulture, so cultivation is possible throughout the year. The greenhouses are increasingly advanced and technological; this is necessary because the availability of suitable farmland and water is decreasing. Thanks to environmental regulations and sustainability, better quality food is being produced on a larger scale.
Buying or selling an agriculture and horticulture company
Private equity parties are getting interested in businesses in agriculture and horticulture because the increasing digitisation offers opportunities for more complex market demands. This also changes the role of the auction, there is more pressure on margins. Production companies have an increased added value because of the specific knowledge of the trade and the power to innovate. Interested buyers are prepared to pay extra for that. In a growing market, this causes a wave of consolidation because more parties enter the market and work together. We notice that the choice to realise growth ambitions through buy-and-build strategies is increasing.
Marktlink: your specialist in acquisitions in agriculture and horticulture
Each year, more than a thousand entrepreneurs in your sector calculate their business value, using the Marktlink Multiple. As a result, we have up-to-date market knowledge and enterprise values at our disposal, and we have a substantial portfolio of potential buyers and sellers in agriculture and horticulture.
Are you considering the process of an acquisition in agriculture and horticulture?
Marktlink is the right place to help you realise your ambitions. Our specialists are happy to work with you to realise your succession or growth ambitions. Always committed, independent and professional from an entrepreneurial standpoint.