Small Ag-Related Businesses Need To Determine Own Destiny

For privately held ag-related business: like equipment dealers, crop insurance providers and crop chemical companies — according to the last U.S. Census on average there are more than 120,000 per state privately held companies and 60 to 70 percent of those will be transitioning over the next 10 to 15 years. Which averages out to be about 30 companies day that will be either transitioning to the next generation or looking for a buyer for their company.

One Accord Capital CEO Jeff Rogers says it is critical for companies that find themselves within that time frame to differentiate their company.

Rogers: "The numbers are staggering so my question is, 'What are you going to do to set yourself apart? What are you going to do that someone is going to be really serious in acquiring you?' Other wise they will wait for a fire sale and they will buy you for 50 cents on the dollar cuz they can. Private equity companies will just sit there with money and will make a ridiculously low offer if you don't have things beautifully done. Really good money will say, 'Why would I buy an organization that is not ready to transition. I can buy them at a discount because there is going to be some many of them. So my counsel and conviction is trying to get the word out to say, 'Start this process early. Talk to your advisors.' Just in doing that you will be better than nine out of ten competitors to others in the state."

We will continue our conversation with Rogers tomorrow.

To learn more about the steps in transitioning or transferring your company, go to www.oneaccordcapital.com for additional resources.