(AA) Dairy Farm in Romania – selling for €20M?

Hi folks, Will here from the Acquisitions Anonymous team. Today's episode looked at a fascinating dairy farm in Romania, blending farming with international business and a sprinkle of geopolitical intrigue. This deal features a dairy farm with an asking price of €20 million. The farm operates with 2,000 head of cattle and is located in a rural area of Romania. It's generating about €7 million in revenue and boasts an EBITDA of €2.6 million. The operation is impressive, producing over 12 million liters of milk annually, and it operates with advanced EU-compliant systems, including solar power that covers 40% of its energy needs. However, the business comes with its share of complexities. It's positioned near Moldova and Ukraine, which introduces some geopolitical risk. Plus, milk prices are volatile, and the operation has high fixed costs, raising concerns about profitability if prices drop. It leaves us wondering: what are you really buying when you consider this deal? Takeaways - EU certifications can provide a strong operational advantage but come with rigorous compliance. - The dairy industry is heavily influenced by commodity prices, so understanding price sensitivity is crucial. - The asking price at 2.89 times revenue and 7.6 times EBITDA may seem reasonable, but consider the land value and fixed costs involved. - Geopolitical factors can impact business stability, especially in regions near conflict zones. - Complex operations like this require a deep understanding of both the agricultural and financial aspects before diving in. You can listen to the whole episode here: https://www.youtube.com/watch?v=8VId2uysNXY And check out the business listing direct: https://mergerscorp.com/property/profitable-exclusive-dairy-farm/