German farmers acquire Slovak farm
Due to the intensive cooperation between the two young German farmers and the Pro4CE team, a 1400 hectare crop Farm, including farmyard with buildings and machinery was acquired in Western Slovakia.
Situation
Young farmers want to acquire a running farm in Slovakia for further development
In 2016 two German young farmers under the age of 25, made the courageous decision to establish a new life as farmer in Slovakia. To realise their goal they were (partly financially) supported by their family. Both young farmers have experience in the agricultural sector but face difficulties to develop a professional farm at home. Their goal was to acquire a running crop farm in Slovakia with at least 1000 hectare of arable land, including a farmyard and storage buildings. Taking over machinery was also an option but not a prerequisite. The farm were to be located in a region where both soil quality and weather conditions are favourable for growing cash crops such as wheat, barley, sunflower, corn, rape, etc. Although the farm should operate as an ongoing business, the farmers had fewer requirements on how the farm was to be run in terms of efficiency and professionalism. Both aimed to implement their own professional standards and farming techniques.
To assist in the acquisition process, development support and strategy implementation, they acknowledged that outside expertise was needed and asked Pro4CE to fulfil that role.
Pro4CE consulting and brokerage role
Search and selection of potential farms, developing acquisition strategy, contracting of best candidate
After extensive interviewing on the farmers requirements and providing detailed information on farming in Slovakia, Pro4CE initiated the search for potential farms. Pro4CE obtained extensive information on relevant details of the pre-selected farms (including ownership structures, yields, land structure, finances, internal organisation, etc.) and supported the farmers through the “due diligence process” of the land to be acquired. Pro4CE was directly involved in all steps of the acquisition process, including negotiations, due diligence, structuring and contracting. During the acquisition process Pro4CE continually had intensive communication with stakeholders of the farm (including a large group of creditors). Negotiations with the selling party were complicated, while a thorough due diligence was necessary to structure the deal from a financial perspective.
Outcome
Acquisition of a 1400 hectare crop farm in West-Slovakia
After a period of intensive cooperation between the young German farmers and the Pro4CE team, a 1400 hectare crop farm, including farmyard, buildings and machinery was acquired in Western Slovakia. Asides from the two farmers as new owners, the existing stakeholders were satisfied with the outcome and continued their business relations. The young farmers are currently implementing their vision and strategy and transforming the company into a modern agricultural business.
