The best company you can acquire is often not the most successful.
Instead, it’s more important to assess how well the seller prepares the exit.
This may sound obvious, but most M&A integrations fail because the buyer or the seller underestimate what it takes to mold a business, so it fits into the new ecosystem.
No transition will be seamless, but there are many factors that influence the success of integrating a business into another.
And the best way to figure out if an integration is worth pursuing, is by gaining more insight into the seller’s side of the deal, and what the best conditions are for a successful sale.
In today’s episode, Garrett Stoerger, Managing Partner at Verdant Partners, shares the best way for both sides to compromise during an M&A deal, a lesser known mistake that leads to regret one year after buying a company, and why some agribusinesses sell better than superior competitors.
Listen now.
Show highlights include:
- The general sweet spot for timing an agribusiness exit with the highest evaluation and a smooth transition (6:59)
- What the ABCD companies teach about the merit of vertical integration in agribusiness (10:52)
- How to tell if you’re compromising too much for an M&A deal in an instant (18:18)
- One common, yet underrated mistake when you buy a company that reduces customer retention more than anything else (22:49)
- 3 reasons why you’ll never close a “Risk Free” M&A deal (and why they’re still worth pursuing) (27:46)
- Why a “Lean Agribusiness” is harder to sell (even if it’s far simpler to run) (37:08)
- The “Housing Market” mistake that destroys the value of every agribusiness for sale (46:03)
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