Exchange ratio in merger, accession VC and management reporting

Client: Director-major shareholder tomato breeder
Industry: glasshouse horticulture – tomatoes

Growers and breeders of tomatoes joined forces to set up a large regional joint venture. Nederhof was asked for a second opinion on the exchange ratio suggested by the growers’ regular auditors.  This second opinion led to new insights.

In consequence, Nederhof was involved in computing the future cash flows of the overall business in purchasing and financing a glasshouse complex.

Some years later, when a major international venture capitalist joined, Nederhof determined the share price. Dutch shares were in part sold, and in part exchanged against shares in the foreign parent company.

Following the transaction Nederhof, in consultation with the foreign parent, optimised the financial and administrative processes, and put an efficient management reporting system in place.