Developing a fully considered view of how a potential investment will perform over time is a critical part of the decision-making process for any investor, regardless of sector. However, it is never a straight forward exercise.
Building the investment case for an agribusiness opportunity is challenging due to the many sector specific factors and assumptions driving not just the valuation metrics, but also the underlying assumptions supporting the investment rationale. Some of these factors are controllable, many are not. These factors include climatic conditions and predicted changes, phytosanitary risks, forex and translation into local currency, consumer trends and market prices (supply/demand dynamics), yield and quality profiles, market windows, channels-to-market and logistics fluidity, input costs, regional socio-political policies, skills requirements and succession planning, development impact, etc.
All play their own fundamental role in the decision-making process of whether the potential investment is viable.
At Persea, we have the capacity and capabilities to conduct detailed Feasibility Studies to assist our clients make informed investment decisions.