Rich Kottmeyer, investment banker and food and agriculture turnaround specialist shares his extensive knowledge of M&A activity and growth potential in the food and agriculture industry. This complex industry is experiencing fundamental changes driven by consumer preferences, technological advancements, and global conflicts. This is leading to new avenues for investments, and multiples ranging from 5-30 times EBITDA across different sub-sectors in the food and agriculture markets.
“Strategic buyers are about 74% of the total M&A spend in the last few years in the farm-to-fork value chain.”
Rich Kottmeyer
What You’ll Learn
Regulatory Overview: A look at the importance of understanding the regulatory landscape and its impact on profitability and enterprise value when evaluating potential acquisitions in the food and agriculture sectors.
Increase in Strategic Activity: There is increasing competitiveness in acquiring innovative food and beverage brands, with strategic buyers often paying higher multiples than private equity firms.
M&A Advisors: There are challenges finding experienced advisory teams with deep expertise across the diverse subsectors of the food and agriculture industry, which is crucial for successful M&A transactions.
Growth Industry: The significant opportunities for private equity investment in the agriculture sector, particularly in areas like production agriculture and sustainable farming practices.
Topics Covered
What’s been the biggest change in food and beverage M&A over the past several years? [3:05]
How do unforeseen regulatory changes impact the industry and M&A activity? [7:38]
What are the primary levers impacting the food and agriculture market? [12:19]
What are GLP-1 drugs? How do they impact consumer food choices and the M&A market? [13:25]
How does the unpredictable nature of consumers impact M&A activity? Can acquirers form a long-term strategic plan to adapt? [22:13]
What are the multiples in the food and agriculture industry? [29:28]
Who is investing in food and agriculture sub-sectors? [32:05]
What are the areas of M&A opportunities in Ukraine and neighboring countries? [34:30]
Why have investors shied away from food and agricultural M&A deals? [38:37]
What makes the food and agriculture sector one of the largest, most complex M&A markets? [44:16]
Advisor, Michael Best & Friedrich LLP | Washington, DC.
Rich has been a Senior Executive in Investment Banking, Management Consulting and Technology focusing on Food and Agriculture with 20+ years of experience as a global thought leader on the transformation of the food and agricultural value chain. Rich has also been a food and national security advisor for 16+ years, working on the Gaza conflict, Ukraine, the national COVID-19 task force, and security for the global food supply chain and commodity prices.
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