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The M&A Landscape of Agricultural Products and Services
- Nima Noghrehkar
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From a historical perspective, the Agricultural Products and Services Industry has witnessed a significant level of activity in the area of mergers and acquisitions. Over nearly four decades, since 1985 to the first quarter of 2024, a total of 19,521 transactions with a value of USD 1.7 trillion have been announced. Despite this high activity level, there has been a marked slowdown of announced transactions over the past six years, with the last two years showing sharp declines. While the volume of deals reflects the significance and impact of this sector, the decline in activity reflects the disruptive transformation it is undergoing.
The Institute for Mergers, Acquisitions, and Alliances (IMAA) provides a comprehensive dataset that tracks M&A activities within the Agricultural Products and Services Industry. The database covers historical data on the number and value of transactions and key financial metrics such as Enterprise Value to EBITDA and Enterprise Value to Revenue. Such comprehensive analysis sheds light on the sector’s growth trajectory over nearly four decades.
The historical M&A data in the Agricultural Products and Services Industry is a valuable resource for analysts, business leaders, investors, entrepreneurs, and policymakers. It provides deep insights into market trends, facilitating strategic decisions on market timing. This information helps craft informed investment and operational strategies, which are crucial for navigating market dynamics.
As we sift through this extensive data, we can glimpse the industry’s evolution and transformation in recent years. The insights gained from this data will enable various stakeholders to make informed decisions that will shape the future of the Agricultural Products and Services Industry.
At a Glance: M&A Activity in the Agricultural Products and Services Industry from 2021 – 2023
2021 M&A Activity
Overall Transactions | Overall Value |
847 Deals | USD 61.25 Billion |
In 2021, the Agricultural Products and Services Industry recorded a total of 847 merger and acquisition transactions, with an overall value of USD 61.25 billion.
While the activities in 2021 represent a recovery from the 2020 slump, this momentum was not sustained in the following years.
2022 M&A Activity
Overall Transactions | Overall Value |
692 Deals | USD 44.42 Billion |
In 2022, M&A activity slowed down significantly in the Agricultural Products and Services Industry, with the number of deals totaling only 692 compared to 847 the previous year. This represents a significant 18.3% decline in number of transactions and a 27.49% drop in value.
2023 M&A Activity
Overall Transactions | Overall Value |
506 Deals | USD 50.76 Billion |
The number of deals continued to dip, ending at 506 in 2023 from 692 in 2022, reflecting an 18% drop. However, overall value at USD 50.76 billion, grew significantly higher at 14.29%.
January to March 2024 M&A Activity
Overall Transactions | Overall Value |
119 Deals | USD 2.8 Billion |
In the first quarter of 2024, a total of 119 deals with a value of USD 2.8 billion were announced in the Agricultural Products and Services Sector. Compared to same period last year, this is almost a 16% drop in volume and 44% decline in value.
Download the IMAA Dataset on M&A Activity in the Agricultural Products and Services Industry.
IMAA’s dataset on M&A activity in the Agricultural Products and Services Industry offers useful insights for understanding the sector’s evolution. Entrepreneurs can use this information in developing their mid- to long-term business plans, while policymakers might leverage it to identify gaps where policies may be needed to help the sector in its transformation. This data, detailing historical trends and financial evaluations, supports informed strategic decisions, contributing to the sector’s continuous transformation.
Deal Multiples (Enterprise Value/ EBITDA)
Deal Multiples (Enterprise Value/ Revenue)
Explore further with our M&A Activity in Construction and Engineering Industry dataset.
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