M&A in Food and Agribusiness Companies: What Your Diligence List is Missing

On 6 November 2021, Kellen Holgate moderated a presentation with speakers Jonathan Cohen, Kari Larson, and Brandy Sargent at the American Agricultural Law Association (AALA) Conference on the topic: “M&A in Food and Agribusiness Companies: What Your Diligence List is Missing.” AALA is a source for information and discussion on laws and public policies affecting agriculture and food, while providing educational programs and member engagement with leadership, service, and networking.

The discussion centered on areas that sometimes are missing from general mergers and acquisitions diligence, such as regulatory food compliance, insurance, and real property and water, as well as unique issues raised in food and agriculture transactions in the financial, legal, insurance, environmental, and corporate formation areas.

Other questions they discussed:

  • What role should counsel play in advance of sale to prepare a selling company in these industries?
  • What types of documents should be requested under each additional area when representing a purchaser?
  • Are there certain lead time items to consider with respect to a company’s sale such as insurance coverage changes, regulatory licenses, and material contracts?

Participants received sample diligence request lists addressing the additional categories and unique questions for both company preparation and buyer diligence.

If you or your client requires diligence assistance in a food or agribusiness transaction, please contact any of our Agribusiness lawyers listed here.

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