Has anyone purchased an agriculture business? E.g., olives, pistachios, etc

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December 03, 2021

by a searcher from Harvard University - Harvard Business School in West Sacramento, CA, USA

Does anyone have experience buying a farm? For example, an olive orchard, grape vineyard, pistachio orchard, etc. Curious to know if anyone has done this or is looking in this space.. I imagine California is difficult given the drought and wildfires, and wondering whether anyone has looked into purchasing a business on the West Coast of the US.

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Reply by a searcher
from The University of Chicago in Virginia Beach, VA, USA
didn't see any responses...but i image in due diligence you want to look at the basics such as how much can you produce (efficiency, yields, product mix), how you can scale efficiently (compete with larger farms), distribution, what you can sell for (any pricing power?) real estate value and that you could leverage up quite a bit but wouldn't multiples be a bit higher than standard 5 - 7x ebitda?
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Reply by a searcher
from University of California, Davis in Sacramento, CA, USA
Hello, I am experienced in California specialty crops. I would love to talk if this is still a topic of interest
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