Financial Analysis
Deal Diligence & Integration
Due diligence addresses the greatest risks that a buyer faces in an acquisition process. The acquisition target always has more information than the prospective buyer, and this asymmetry can be balanced with a skilled consultant that holds real-world industry experience. After the deal is completed, Verdant's team of specialists can also assist in the integration process, assisting the buyer in maximizing the value of the business they just acquired.
Examples of Past Work
Albert Lea Seed engaged Verdant to conduct buy-side due diligence on the acquisition of Blue River Organic Seed, and a Verdant Advisor concurrently assisted in the multi-step transaction integration.
Verdant conducted a five-year investment performance review for an agricultural holding company as part of an equity raise, separating performance between land and operating assets.
GDM, an Argentine soybean breeding company, engaged Verdant to assist in the development of a commercialization path in the U.S., thereafter opening doors with potential partners that lead to a JV with Mustang Seeds and acquisition of Local Seed.
Verdant managed the waterfall calculations and capital account statements for a private equity company, to navigate a complicated transition as the client firm simplified their capital structure from multiple share classes down to one.
Sample Case Study
Albert Lea Seed is an independent, family owned company that provides conventional non-GMO and organic seed to farmers across the U.S. Albert Lea sells corn, soybean, cover crop, small grain, and forage seed. Albert Lea was presented with the opportunity to acquire Blue River Organic Seed, which would position them in as the leader in the organic field seed business.
The Objective
ALS desired to acquire the business and select assets of BROS, but had no prior M&A experience and was looking for a qualified advisor to assist in the process. Verdant was retained to assist in the due diligence of BROS, and later the negotiation of the transaction structure.
The Approach
Simultaneous to the due diligence and negotiation efforts, one of Verdant’s Advisors also crafted a multi-step post-acquisition integration plan involving: designing an operating model, process discovery, building & executing a plan, and sustaining and optimizing post closing.
The Deliverable
Using the integration plan, differences in inventory tracking, sales channels, and seed cleaning procedures between the two companies were identified. A plan was crafted on how to address these differences to help provide a more efficient integration.
The Result
The diligence, negotiation and ultimate integration between ALS and BROS was successfully executed with high levels of customer retention, resulting in a robust business with better documentation of critical processes and ability to navigate staff turnover with less disruption.