Agriculture and food production, Western Europe
A renowned, multi-generational agriculture dairy company in Western Europe sought a valuation report from Kreston Lentink to assist with potential internal share transfers. The valuation aimed to support the family’s long-term growth and succession planning amid an evolving market landscape.
Expertise for agriculture company
The agriculture company faced industry challenges, including pricing volatility and recent underperformance. Despite recent management changes, long-term profitability remained uncertain, and shareholder disagreements arose regarding dividend policies and reinvestment into sustainable practices.
Kreston Lentink stepped in to develop a robust valuation report, presenting three scenarios that outlined paths to restoring historical EBITDA levels over varied timelines. They created a four-year financial model, supported by a budgeting tool for future planning, which factored in external market data and specific value drivers. A market multiple assessment verified the valuation’s fairness, aligning it with the company’s patented innovations and strong reputation.
Enabling long-term planning
The comprehensive valuation provided by Kreston Lentink was well received by all shareholders, offering a clear framework for potential internal share transfers and supporting long-term financial planning for the agriculture company’s sustainable growth.
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