Preparing the company for sale

Maximize the value of the land bank and ensure it is proven to a potential investor

If you decide to sell agribusiness, the priority task is to maximize the value of the land bank and ensure its confirmation for a potential investor.

The cost of the land bank can be discounted due to the following problems:

Irrelevant contours of fields, technical losses and uncultivated land plots;
Low land consolidation within fields;
Risk clauses in contracts, unconfirmed lease terms;
Errors in registers caused by entering information on agreements;
Actual court cases, restrictions on land plots;
Unsigned agreements related to unclaimed land plots, other communal lands, etc.

Timely detection of existing problems makes it possible to take the necessary measures and increase the final value of the land bank. SmartFarming will help you structurize your land bank and collect complete information about each plot and its characteristics:

To agree on the methodology for evaluation of the company’s land bank;
Digitize the current value;
Identify issues that reduce the value of the land bank;
Work out the issues together with the company’s land service;
Prepare a data room for an existing or potential investor;
Maintain the data room in an up-to-date condition until the moment of sale;
Confirm the value to the investor.

DIGITIZATION OF THE LAND BANK VALUE

To conduct an audit of the land bank and digitize its value, it is necessary to collect the following information (minimum list):

An accurate and up-to-date map of the company’s fields;
Digitized data about competitors and their fields;
Digitized information on credit rating, agrochemical passport or field yield maps;
A complete map of land plots in all village councils where the company operates, indicating the category of land, its purpose and type;
Data from state registers (State Land Cadastre, State Register of Property Rights to Immovable Property) for all village councils;
Digitized register of agreements with cadastral numbers, dates of conclusion, registration and additional agreements, lease terms;
Digitized information about land plots with unclaimed rights, inheritance. etc.;
Digitized information about state and communal lands;
Digitized information about rent by company and competitors.

As part of the land bank analysis, it is necessary to prepare the following reports:

Land bank balance sheet;
Rating of fields;
Balance of land exchanges;
Report on the risks of reducing the value of the land bank;
Report on the possibilities of increasing the value of the land bank.

DATA Room and task management

Digitized data is imported into the ProZemli system, which provides two key tasks for increasing the capitalization of the land bank:

Acts as a single visual interface, in which all analytics on the land bank is collected — plots, fields, agreements, competitors, including visualization via maps and dashboards;
Provides an opportunity to manage the tasks of land service employees to solve problems that reduce the value of the land bank and use opportunities to increase it.

Frequently Asked Questions

How much do the company's services cost?
The cost of our services depends on the scope and time frame of the tasks that need to be solved. SmartFarming can work according to the success fee model, when we receive a reward for increasing the value of the land bank, or according to the payment model for specific services — field measurement, land bank audit, or for ProZemli licenses.
Why do I need a consultant?
Agreements for the sale of agribusiness are quite complex. In order to maximize the value of the land bank, it is necessary to conduct an unbiased analysis, identify key problems and quickly eliminate them. In addition, you need to prepare a data structure to protect the value of the land bank. Basically, this is what you need a consultant for.
Why is the methodology by SmartFarming more valuable than the classic approach of law firms?
The assessment of the land bank requires checking of the register of lease agreements. In order to determine the objective value of the land bank, it is necessary to measure 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 do such projects on a turnkey basis. We have already completed analysis of more than 2.5 million hectares with this approach.
What will be the result of SmartFarming service?
The result of our service is increasing the value of the company’s land bank and preparing the Data Room for a potential investor.
Is it possible to get recommendations from your clients?
Yes, of course. Upon request from potential clients, we provide contacts of our clients and partners with whom we have performed similar land bank evaluation projects.
How is confidentiality ensured?
The company signs a non-disclosure agreement (NDA) with customers, partners and employees. Secondly, all the data is stored in ProZemli cloud system, which provides the ability to configure access rights only for people participating in the project according to their functional needs.

Do you need to prepare your company for sale?

Fill in the form

and we will contact you shortly

Fill in the form

and we will contact you shortly

SmartFarming | We digitize agribusiness

Company

Services

Call me back

Thank you!
Your request is already being processed

We will contact you soon