Interview on M&A Activity in the Agricultural Market
This video is an interview with CS Liew about the current state of M&A activity in the agricultural market.
00:00:00 AMVAC's Bob Trogele interviews Pacific Agriscience's CS Liew about M&A activity in the agricultural market. They discuss future prospects amidst global economic factors.
📊 Mergers and Acquisitions activity in the agricultural market has slowed since mid-2022 due to inflation and interest rates.
🌍 CS Liew discusses the future of AG mergers and acquisitions and the global impact of inflation and interest rates.
00:01:23 Summary: This video is an interview with CS Liew about the current state of M&A activity. The interviewee discusses their experience in the industry and the factors affecting the market.
📊 Mergers and acquisitions (M&A) have been a major focus of the speaker for the past six years, with a wide network of contacts globally.
⏸️ M&A activities have slowed down in the past year due to higher interest rates, increased costs of money, and fluctuations in valuations.
🔍 The speaker highlights the impact of geopolitical factors, such as the war in Ukraine, on M&A activity in the market.
00:02:45 The impact of disruptions in commodity prices and geopolitical rivalries is affecting M&A activity in the agriculture industry.
💰 The rise in food prices and geopolitical rivalries are affecting commodity prices and creating disruptions in the market, impacting companies' valuations.
📈 Owners of companies are expecting high valuations due to the current market conditions, but it is important to be realistic and consider the actual requirements for closing deals.
🔒 While there are many opportunities available, it is crucial to ensure that valuations align with the desired outcomes in order to successfully complete mergers and acquisitions.
00:04:07 Bob Trogele interviews CS Liew about increased competition in the pesticide market in India and China.
📈 Market access is a key focus due to the increase in the number of companies producing technical grade pesticides in India and China.
💼 Competition among technical grade pesticide producers has been intense and is expected to become even more intense in the future.
💯 High evaluation and interest rates are also important factors in the market.
00:05:26 The interview discusses the intense competition in the pesticide segment and the importance of acquiring stakes in major distributors for market access.
📈 The pesticide market is growing at a slow rate of 2-3%.
💼 Intense competition is expected in the pesticide segment, leading to increased focus on major distributors.
💰 Future M&A activities will focus on gaining market access rather than research and development.
00:06:48 Summary: AMVAC's Bob Trogele interviews Pacific Agriscience's CS Liew about M&A activity. Discussion focuses on acquisitions in crop nutrition and bio-rational technologies for market access.
M&A activity in the agricultural industry is heavily regulated due to anti-trust issues.
Companies like Pacific Agriscience are actively involved in acquisitions, particularly in the bio-rational space.
Market access and distribution networks are important factors in M&A deals in the horticultural sector.
00:08:11 This video discusses M&A activity in the agricultural space, with a focus on market access and distressed startups.
🔑 The EBITDA multiples in the agricultural space range from 12x to 18x, with some companies going for over 28x.
🌍 In Brazil, many companies are acquiring or setting up direct distribution channels to expand their market access.
💰 There is an increase in distressed startup companies facing financial difficulties and struggling to raise money.
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