Evaluation of the land bank upon purchase
Get confirmation of the land bank and cultivated crops for the business you are going to buy
When buying an agribusiness, evaluation of the land bank plays a key role. SmartFarming provides a range of services that will help a buyer get an objective assessment of the land bank and understand the key risks of the purchase.
We will help quickly, qualitatively and with maximum accuracy to:
The cost of a land bank may depend on the following factors:
Assets (cultivated fields)
Liabilities (leased land plots)
Identifying the actual indicators of the enterprise’s land bank makes it possible to assess the effectiveness of liabilities, the consolidation of assets and the main risks of their use.
To conduct an audit of the land bank and digitize its value, it is necessary to collect the following information (minimum list):
As part of the land bank analysis, it is necessary to create the following reports:
Confirmation of indicators that affect the value
Digitization of acquisition risks
List of tasks to solve after acquisition
The cost of due diligence services when buying an agribusiness depends on the size of the land bank, the time available for conducting the analysis, as well as the methodology of the land bank audit. From the experience of SmartFarming projects, the cost starts from 0.5% of the cost of the land bank.
The economic effect of these services is very easy to calculate: it is a percentage of the value of the land bank, which was discounted by the agribusiness seller. As a rule, this indicator is around 5-10% of the value declared by the seller. In some projects, the result of the land bank audit and risk assessment is the investor’s withdrawal from negotiations.
Due diligence of the land bank is not only about checking the register of lease agreements. In order to determine an objective value of the land bank, it is necessary to measure the fields, digitize all land plots, check all state registers, and then conduct a detailed analysis of field consolidation, exchanges with competitors, etc. This is the unique expertise of SmartFarming – to conduct such projects on a turnkey basis. As of now, with this apporoach we have analysed more than 2.5 million hectares.
Of course. At the request, we provide the contacts of our clients and partners with whom we have implemented similar land bank due diligence projects.
First of all, the company signs a non-disclosure agreement (NDA) with customers, partners and with its employees. Secondly, the data is stored in ProZemli cloud system, which provides the ability to configure access rights only for employees participating in the project according to their functional needs.
SmartFarming will help build a modern land bank management system providing owners and management with 24/7 management reporting. For this, we have our own ProZemli system, the analytical platform Vkursi Zemli, as well as an online training course for the land department. Our mission is to help you reduce land bank management costs and increase land consolidation and business capitalization.
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