Mercer Capital’s Agribusiness Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to agribusiness professionals. Each issue includes a segment focus, market overview, mergers and acquisitions review, and more.
This issue includes discussion on Agriculture Chemicals. Excerpting from the discussion:
Agricultural chemical producers and manufacturers experienced strong revenue growth in 2013 and 2014 due to record-high agricultural production and crop yields. The sharp decline in energy prices over the second half of 2014 boosted profitability in the sector as well, creating a favorable environment for industry participants.
Despite positive signals, the sector faces a number of potential headwinds exiting 2014. Deflated agricultural commodity prices, due to a glut of supply, along with a strengthening U.S. dollar, may decrease demand for industry products both domestically and abroad. New technological advances, including genetically modified seeds, may also reduce the need for agricultural chemicals. The sector faces a number of factors affecting industry viability, creating a high level of uncertainty going forward.
Special Supplement also included Fairness Opinions: Evaluating a Buyer’s Shares from the Seller’s Perspective
To read the entire write up, download the newsletter (pdf) here.