Our team at Peer Review share a wealth of experience and expertise in business here on our Insights blog. We hope you find these solutions and strategies useful tools for improving your business performance.

Review Of Dairy Syndicate Offer

Updated: Sep 17, 2018

Investment Opportunity – Too good to be True?

What to do when an unexpected opportunity comes your way.

Situation

An experienced dairy farmer was approached by a group of investors offering to invest in a new syndicate, and manage that new farm business.


Identifying the Problem

In order to find the right solutions, we first needed to clearly define the problem. Part of that process is asking the tough questions, such as:

  • Does this investment meet the dairy farm manager’s overall life goals?

  • What areas should be covered in a shareholder’s agreement?

  • What are the realistic ongoing returns of the business?

  • How compatible are the investors?

  • What will be the roles and responsibilities within the business?

  • What are the potential rewards for the manager, and are they sufficient?

  • Is the proposed purchase price appropriate?

  • What is the exit strategy, i.e. How do I get my money out?

  • Are there any conflicts of interest?

  • Is there alignment of goals and vision between investors?


The Solutions

  • Established that further questions needed to be asked.

  • Identified unacceptable conditions within the offer.

  • Identified variables and secured a fair manager’s compensation package.

  • Recognised potential pitfalls and threats to our customer’s position in the syndication process.

  • Agreed on resilient process for conflict resolution.


The Result

The dairy farmer took comfort from having an independent, unbiased opinion of the investment opportunity. He was able to make a decision confidently with eyes wide open.


Download a printable comprehensive copy of this case study.

BOOK YOUR FREE INITIAL CONSULTATION 

© 2018 Peer Review Ltd. Web design by Natwick

INVERCARGILL

98 Yarrow Street

Cnr Yarrow & Deveron Streets

PO Box 1746, Invercargill 9840

P (03) 211 0085 

F (03) 218 2172

0800 427 007

GORE

81 Hokonui Drive

Cnr Hokonui Dr & Denton St

PO Box 77, Gore 9710

P (03) 209 0045 

F (03) 208 1534

'Proudly providing business solutions for Otago and Southland, New Zealand'

PeerReview_Logo_online.jpg