You want to sell your livestock farm? Then it's good to know what the takeover market looks like in terms of livestock farms. 'Without farmers, no food'. Farmer protests in the Netherlands continue, as livestock farms and other agricultural businesses are under high pressure. Nitrogen, climate change and animal welfare are key issues for these organizations in developing future farms.
The number of acquisitions and mergers in the livestock and breeding industry has increased cautiously over the years. This is due in part to stricter environmental legislation, politics and health.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the agri and food sector - to which a livestock farm belongs - an indicative EBITDA-multiple range of 5.4 to 6.1 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Do you want to buy a business or sell a business in the Agri & Food sector? With this Brookz Sector Monitor we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the Agri & Food. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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Many larger organizations are visible in this sector. As a result, the number of businesses with one person working is relatively low.
In figures, the picture of livestock farms in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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A number of trends and developments will inevitably cause changes in the coming years, but also offer livestock farms many growth and acquisition opportunities:
In recent years, the industry has put a strong focus on animal welfare. From a business perspective, it may pay to keep as many pigs or chickens per square meter as possible, but society demands better for these living creatures. Fewer animals and better living conditions are positive developments and, in addition, systems based on artificial intelligence can improve behavior and animal management, according to Wageningen University & Research.
Not a day goes by without nitrogen emissions appearing in the headlines. Because too much nitrogen impoverishes nature. Plants and animals disappear, reducing biodiversity. And the agricultural sector is responsible for about 60% of nitrogen emissions. So for the livestock industry, this is quite a challenge.
Farmers are incredibly affected by climate change. The unpredictability of the climate and extreme weather conditions have a major impact on harvests, animal welfare and the future sustainability of farming.
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